Document And Entity Information
Document And Entity Information | 12 Months Ended |
Dec. 31, 2022 shares | |
Document Information Line Items | |
Entity Registrant Name | KORNIT DIGITAL LTD. |
Trading Symbol | KRNT |
Document Type | 20-F |
Current Fiscal Year End Date | --12-31 |
Entity Common Stock, Shares Outstanding | 49,952,942 |
Amendment Flag | false |
Entity Central Index Key | 0001625791 |
Entity Current Reporting Status | Yes |
Entity Voluntary Filers | No |
Entity Filer Category | Large Accelerated Filer |
Entity Well-known Seasoned Issuer | Yes |
Document Period End Date | Dec. 31, 2022 |
Document Fiscal Year Focus | 2022 |
Document Fiscal Period Focus | FY |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
ICFR Auditor Attestation Flag | true |
Document Registration Statement | false |
Document Annual Report | true |
Document Transition Report | false |
Entity File Number | 001-36903 |
Entity Incorporation, State or Country Code | L3 |
Entity Address, Address Line One | 12 Ha’Amal St. |
Entity Address, City or Town | Rosh-Ha’Ayin |
Entity Address, Postal Zip Code | 4809246 |
Entity Address, Country | IL |
Title of 12(b) Security | Ordinary shares, par value NIS 0.01 per share |
Security Exchange Name | NASDAQ |
Entity Interactive Data Current | Yes |
Document Accounting Standard | U.S. GAAP |
Document Shell Company Report | false |
Auditor Firm ID | 1281 |
Auditor Name | KOST FORER GABBAY & KASIERER |
Auditor Location | Tel-Aviv, Israel |
Business Contact [Member] | |
Document Information Line Items | |
Entity Address, Address Line One | 12 Ha’Amal St. |
Entity Address, City or Town | Rosh-Ha’Ayin |
Entity Address, Postal Zip Code | 4809246 |
Entity Address, Country | IL |
Contact Personnel Name | Lauri Hanover |
City Area Code | +972 |
Local Phone Number | 3 908-5800 |
Contact Personnel Fax Number | +972 3 908-0280 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Current Assets | ||
Cash and cash equivalents | $ 104,597 | $ 611,551 |
Short-term bank deposits | 275,033 | 9,168 |
Marketable securities | 20,380 | 28,116 |
Trade receivables, net of allowances of $738 and $286, respectively | 67,360 | 49,797 |
Inventories, net | 89,415 | 63,017 |
Prepaid expenses and other current assets | 22,054 | 13,694 |
Total current Assets | 578,839 | 775,343 |
Non-current Assets | ||
Marketable securities | 245,970 | 149,269 |
Property, plant and equipment, net | 60,463 | 45,046 |
Deferred tax assets, net | 9,339 | |
Operating lease right-of-use assets | 27,139 | 25,155 |
Intangible assets, net | 9,890 | 10,063 |
Goodwill | 29,164 | 25,447 |
Other non-current assets | 5,927 | 856 |
Severance pay fund | 274 | 357 |
Total non-current Assets | 378,827 | 265,532 |
Total Assets | 957,666 | 1,040,875 |
Current Liabilities | ||
Trade payables | 14,833 | 46,448 |
Employees and payroll accruals | 14,255 | 22,482 |
Deferred revenues and customers’ advances | 5,701 | 5,401 |
Operating lease liabilities | 4,989 | 5,058 |
Accrued expenses and other current liabilities | 25,592 | 17,287 |
Total current Liabilities | 65,370 | 96,676 |
Non-current liabilities | ||
Accrued severance pay | 1,223 | 1,543 |
Operating lease liabilities | 21,035 | 21,900 |
Other non-current liabilities | 1,216 | 1,203 |
Total non-current Liabilities | 23,474 | 24,646 |
Total Liabilities | 88,844 | 121,322 |
SHAREHOLDERS’ EQUITY | ||
Ordinary shares of NIS 0.01 par value - Authorized: 200,000,000 shares at December 31, 2022 and 2021; Issued and Outstanding: 49,953,615 and 49,619,782 shares at December 31, 2022 and 2021, respectively | 134 | 133 |
Additional paid-in capital | 921,695 | 875,367 |
Accumulated other comprehensive income (loss) | (17,424) | 571 |
Retained earnings (accumulated deficit) | (35,583) | 43,482 |
Total shareholders’ Equity | 868,822 | 919,553 |
Total Liabilities and shareholders’ Equity | $ 957,666 | $ 1,040,875 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) $ in Thousands | Dec. 31, 2022 USD ($) shares | Dec. 31, 2022 ₪ / shares | Dec. 31, 2021 USD ($) shares | Dec. 31, 2021 ₪ / shares |
Statement of Financial Position [Abstract] | ||||
Net of allowances (in Dollars) | $ | $ 738 | $ 286 | ||
Ordinary shares, par value (in New Shekels per share) | ₪ / shares | ₪ 0.01 | ₪ 0.01 | ||
Ordinary shares, shares authorized | 200,000,000 | 200,000,000 | ||
Ordinary shares, shares issued | 49,953,615 | 49,619,782 | ||
Ordinary shares, shares outstanding | 49,953,615 | 49,619,782 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenues | |||
Products | $ 222,502 | $ 282,637 | $ 164,918 |
Services | 49,016 | 39,369 | 28,413 |
Total revenues | 271,518 | 322,006 | 193,331 |
Cost of revenues | |||
Products | 125,935 | 132,730 | 75,040 |
Services | 49,083 | 37,365 | 30,490 |
Total cost of revenues | 175,018 | 170,095 | 105,530 |
Gross profit | 96,500 | 151,911 | 87,801 |
Operating expenses | |||
Research and development, net | 56,026 | 43,729 | 31,464 |
Sales and marketing | 71,067 | 58,752 | 36,405 |
General and administrative | 39,289 | 36,637 | 26,661 |
Total operating expenses | 166,382 | 139,118 | 94,530 |
Operating income (loss) | (69,882) | 12,793 | (6,729) |
Financial income, net | 13,382 | 2,599 | 3,498 |
Income (loss) before income taxes (tax benefit) | (56,500) | 15,392 | (3,231) |
Taxes on income (tax benefit) | 22,565 | (135) | 1,552 |
Net income (loss) | $ (79,065) | $ 15,527 | $ (4,783) |
Basic earnings (losses) per ordinary share (in Dollars per share) | $ (1.59) | $ 0.33 | $ (0.11) |
Diluted earnings (losses) per ordinary share (in Dollars per share) | $ (1.59) | $ 0.32 | $ (0.11) |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ (79,065) | $ 15,527 | $ (4,783) |
Available-for-sale securities: | |||
Unrealized gains (losses) arising during the period, net of tax | (16,912) | (2,423) | 1,946 |
Losses (gains) reclassified into net income (loss), net of tax | 10 | (32) | (465) |
Net change | (16,902) | (2,455) | 1,481 |
Cash flow hedges: | |||
Changes in unrealized gains (losses), net of tax | (3,450) | 415 | 285 |
Losses (gains) reclassified into net income (loss), net of tax | 2,357 | (122) | (294) |
Net change | (1,093) | 293 | (9) |
Foreign currency translation adjustment | 418 | ||
Total other comprehensive income (loss), net of tax | (17,995) | (2,162) | 1,890 |
Comprehensive income (loss) | $ (97,060) | $ 13,365 | $ (2,893) |
Statements of Shareholders' Equ
Statements of Shareholders' Equity - USD ($) $ in Thousands | Ordinary shares | Additional paid in capital | Accumulated other comprehensive income (loss) | Retained earnings (accumulated deficit) | Total |
Balance at Dec. 31, 2019 | $ 105 | $ 304,617 | $ 843 | $ 32,738 | $ 338,303 |
Balance (in Shares) at Dec. 31, 2019 | 40,684,340 | ||||
Issuance of ordinary shares in a secondary offering, net of issuance costs in an amount | $ 14 | 162,531 | 162,545 | ||
Issuance of ordinary shares in a secondary offering, net of issuance costs in an amount (in Shares) | 4,689,941 | ||||
Exercise of options and vesting of restricted stock units | $ 2 | 5,658 | 5,660 | ||
Exercise of options and vesting of restricted stock units (in Shares) | 614,332 | ||||
Share-based compensation | 10,036 | 10,036 | |||
Warrants to customers | 5,366 | 5,366 | |||
Other comprehensive income (loss) | 1,890 | 1,890 | |||
Net income (loss) | (4,783) | (4,783) | |||
Balance at Dec. 31, 2020 | $ 121 | 488,208 | 2,733 | 27,955 | 519,017 |
Balance (in Shares) at Dec. 31, 2020 | 45,988,613 | ||||
Issuance of ordinary shares in a secondary offering, net of issuance costs in an amount | $ 10 | 341,755 | 341,765 | ||
Issuance of ordinary shares in a secondary offering, net of issuance costs in an amount (in Shares) | 3,042,845 | ||||
Exercise of options and vesting of restricted stock units | $ 2 | 4,848 | 4,850 | ||
Exercise of options and vesting of restricted stock units (in Shares) | 588,324 | ||||
Share-based compensation | 15,133 | 15,133 | |||
Warrants to customers | 25,423 | 25,423 | |||
Other comprehensive income (loss) | (2,162) | (2,162) | |||
Net income (loss) | 15,527 | 15,527 | |||
Balance at Dec. 31, 2021 | $ 133 | 875,367 | 571 | 43,482 | 919,553 |
Balance (in Shares) at Dec. 31, 2021 | 49,619,782 | ||||
Exercise of options and vesting of restricted stock units | $ 1 | 829 | 830 | ||
Exercise of options and vesting of restricted stock units (in Shares) | 333,833 | ||||
Share-based compensation | 22,999 | 22,999 | |||
Warrants to customers | 22,500 | 22,500 | |||
Other comprehensive income (loss) | (17,995) | (17,995) | |||
Net income (loss) | (79,065) | (79,065) | |||
Balance at Dec. 31, 2022 | $ 134 | $ 921,695 | $ (17,424) | $ (35,583) | $ 868,822 |
Balance (in Shares) at Dec. 31, 2022 | 49,953,615 |
Statements of Shareholders' E_2
Statements of Shareholders' Equity (Parentheticals) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Stockholders' Equity [Abstract] | ||
Net of issuance costs | $ 760 | $ 739 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash flows from operating activities: | |||
Net income (loss) | $ (79,065) | $ 15,527 | $ (4,783) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||
Depreciation and amortization | 13,565 | 7,096 | 4,711 |
Fair value of warrants deducted from revenues | 22,500 | 25,423 | 5,366 |
Share based compensation | 22,649 | 15,133 | 10,036 |
Amortization of premium and accretion of discount on marketable securities, net | 1,820 | 1,279 | 395 |
Realized loss (gain) on sale of marketable securities | 10 | (32) | (503) |
Change in operating assets and liabilities: | |||
Trade receivables, net | (15,891) | 1,782 | (9,529) |
Inventories, net | (29,004) | (14,079) | (15,827) |
Other non-current assets | (4,251) | (110) | 54 |
Prepaid expenses and other current assets | (8,635) | (4,134) | (2,333) |
Deferred taxes | 8,530 | (2,064) | 2,177 |
Operating lease right-of-use assets and liabilities, net | (2,918) | 211 | 1,265 |
Trade payables | (26,948) | 12,865 | 6,864 |
Employees and payroll accruals | (7,674) | 9,698 | 6,366 |
Deferred revenues and customers’ advances | (1,426) | (21,668) | 24,286 |
Accrued expenses and other current liabilities | 7,190 | 5,648 | 4,822 |
Accrued severance pay, net | (237) | 309 | 143 |
Other non-current liabilities | 13 | 760 | (877) |
Loss from sale and disposal of property, plant and equipment | 425 | 139 | |
Foreign currency translation loss on intercompany balances with foreign subsidiaries | (362) | ||
Net cash provided by (used in) operating activities | (99,347) | 53,644 | 32,410 |
Cash flows from investing activities: | |||
Purchase of property, plant and equipment | (18,042) | (14,477) | (13,489) |
Acquisition of intangible assets and capitalization of software development costs | (308) | (130) | (121) |
Proceeds from sale of property, plant and equipment | 71 | 4 | |
Investment in equity securities | (820) | (351) | |
Cash paid in connection with acquisition, net of cash acquired | (14,654) | (14,991) | (15,535) |
Proceeds from (investment in) short-term bank deposits, net | (265,865) | 215,636 | (129,804) |
Proceeds from sale of marketable securities | 1,945 | 1,000 | 58,532 |
Proceeds from maturity of marketable securities | 27,898 | 13,526 | 21,706 |
Investment in marketable securities | (137,500) | (110,458) | (35,923) |
Net cash provided by (used in) investing activities | (407,275) | 89,755 | (114,630) |
Cash flows from financing activities: | |||
Proceeds from public offering, net of issuance costs | 339,760 | 161,981 | |
Exercise of employee stock options | 619 | 4,850 | 5,660 |
Payments of withholding taxes related to exercise of share-based awards | (951) | (2,235) | (596) |
Net cash provided by (used in) financing activities | (332) | 342,375 | 167,045 |
Foreign currency translation adjustments on cash and cash equivalents | 209 | ||
Increase (decrease) in cash and cash equivalents | (506,954) | 485,774 | 85,034 |
Cash and cash equivalents at the beginning of the period | 611,551 | 125,777 | 40,743 |
Cash and cash equivalents at the end of the period | 104,597 | 611,551 | 125,777 |
Supplemental disclosure of cash flow information | |||
Cash paid during the year for income taxes | 13,171 | 435 | 1,028 |
Non-cash investing and financing activities: | |||
Purchase of property, plant and equipment acquired | 1,692 | 2,461 | 1,904 |
Inventory transferred to be used as property, plant and equipment | 6,792 | 3,572 | 990 |
Right-of-use asset recognized with corresponding lease liability | $ 7,585 | $ 5,688 | $ 2,929 |
General
General | 12 Months Ended |
Dec. 31, 2022 | |
General [Abstract] | |
GENERAL | NOTE 1:- GENERAL a. Kornit Digital Ltd. (the “Company”) was incorporated in 2002 under the laws of the State of Israel. The Company and its subsidiaries develop, design and market digital printing solutions for the global printed textile industry. The Company’s and its subsidiaries’ solutions are based on their proprietary digital textile printing systems, ink and other consumables, associated software and value-added services. b. The Company established wholly owned subsidiaries in Israel, the United States, Germany, Hong Kong, the United Kingdom and Japan. The Company’s subsidiaries are engaged primarily in services, sales, and marketing, except for the Israeli subsidiary which is engaged primarily in research and development and manufacturing. c. The Company depends on four major suppliers to supply certain components for the production of its products. If one of these suppliers fails to deliver or delays the delivery of the necessary components, the Company will be required to seek alternative sources of supply. A change in these suppliers could result in manufacturing delays, which could cause a possible loss of sales and, consequently, could adversely affect the Company’s results of operations and financial position. d. On April 5, 2022, the Company, through its wholly owned subsidiary Kornit Digital Technologies Ltd., acquired 100% of the outstanding common shares and voting rights of Tesoma GmbH, a German manufacturer of continuous dryers and oven systems. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Significant Accounting Policies [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | NOTE 2:- SIGNIFICANT ACCOUNTING POLICIES The consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”). a. Use of estimates: The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates, judgments and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the period. The Company’s management believes that the estimates, judgments and assumptions used are reasonable based upon information available at the time they are made. Actual results could differ from those estimates. On an ongoing basis, the Company’s management evaluates estimates, including those related to intangible assets and goodwill . b. Financial statements in United States dollars: Most of the revenues of the Company and its subsidiaries are denominated in U.S. dollars. The U.S. dollar is the primary currency of the economic environment in which the Company and its subsidiaries operate. Thus, the functional and reporting currency of the Company and its subsidiaries is the U.S. dollar. Accordingly, monetary accounts maintained in currencies other than the U.S. dollar are re-measured into U.S. dollars in accordance with Accounting Standards Codification (“ASC”) No. 830 “Foreign Currency Matters”. Changes in currency exchange rates between the Company’s functional currency and the currency in which a transaction is denominated are included in the Company’s statements of operations as financial income, net in the period in which the currency exchange rates change. During the year ended December 31, 2020, the functional currency of the Company’s subsidiary in Germany was the Euro. All amounts on the balance sheet have been translated into U.S. dollars using the exchange rate in effect on the relevant balance sheet date, and all amounts in the statement of operation have been translated into U.S. dollars using the exchange rate on the respective date on which those elements are recognized. The resulting translation adjustment was reported as a component of accumulated other comprehensive income in shareholders’ equity. Management conducted a review of the functional currency of the German subsidiary and decided to change its functional currency from the EURO to the U.S. Dollars, effective January 1, 2021. This change was based on an assessment by Company’s management that the U.S. dollars is the primary currency of the economic environment in which the German subsidiary operates. c. Principles of consolidation: The consolidated financial statements include the accounts of the Company and its subsidiaries. Intercompany balances and transactions, including profits from intercompany sales, have been eliminated upon consolidation. d. Cash equivalents: Cash equivalents are short-term highly liquid investments that are readily convertible to cash with original maturities of three months or less, at acquisition. e. Short-term bank deposits: Short-term bank deposits are deposits with an original maturity of more than three months but less than one year from the date of acquisition. f. Marketable securities: The Company accounts for investments in marketable securities in accordance with ASC 320, “Investments - Debt Securities”. Management determines the appropriate classification of its investments at the time of purchase and re-evaluates such determinations at each balance sheet date. The Company classifies its marketable securities as either short-term or long-term based on each instrument’s underlying contractual maturity date and the entity’s expectations of sales and redemptions in the following year. The Company classifies all of its marketable securities as available-for-sale. Available-for-sale securities are carried at fair value, with the unrealized gains and losses, net of tax, reported in “accumulated other comprehensive income (loss)” in shareholders’ equity. Realized gains and losses on sales of marketable securities are included in financial income, net and are derived using the specific identification method for determining the cost of securities. The amortized cost of marketable securities is adjusted for amortization of premium and accretion of discount to maturity, both of which, together with interest, are included in financial income, net. At each reporting period, the Company evaluates whether declines in fair value below amortized cost are due to expected credit losses, as well as the Company’s ability and intent to hold the investment until a forecasted recovery occurs in accordance with ASC 326, Financial Instrument- Credit losses. Allowance for credit losses on available-for-sale marketable securities are recognized in the Company’s consolidated statements of operations, and any remaining unrealized losses, net of taxes, are included in accumulated other comprehensive income (loss) in shareholders’ equity. The Company did not recognize an allowance for credit losses on marketable securities for the years ended December 31, 2022, 2021 and 2020. g. Inventories: Inventories are measured at the lower of cost or net realizable value. The cost of inventories comprises cost of purchases and costs incurred in bringing the inventories to their present location and condition. Inventory write-off is measured as the difference between the cost of the inventory and net realizable value and is charged to cost of sales. Cost of inventories is determined as follows: Raw materials and components - on the basis of weighted average cost. Finished goods - on the basis of average costs of materials, and other direct manufacturing costs. During the years ended December 31, 2022, 2021 and 2020, the Company recorded inventory write-offs in a total amount of $11,445, $4,909and $5,000, respectively. h. Property, plant and equipment: Property, plant and equipment are measured at cost, including directly attributable costs, less accumulated depreciation and accumulated impairment losses. Depreciation is calculated on a straight-line basis over the useful life of the assets at annual rates as follows: % Office furniture and equipment 7 - 20 Computer and peripheral equipment 33 Machinery and equipment 7 - 33 Leasehold improvements (*) Building and land (**) (*) Leasehold improvements are amortized on a straight-line basis over the shorter of the lease term (including the extension option held by the Company and intended to be exercised) and the expected life of the improvement. (**) Building and land consist of land and an ink manufacturing plant. In September 2019, the Company purchased the land which includes long-term leasehold rights, with a lease term of 98 years. The manufacturing plant useful life is 25 years. i. Leases: The Company determines if an arrangement is a lease at inception. Contracts containing a lease are further evaluated for classification as an operating or finance lease. In determining the leases classification the Company assesses among other criteria: (i) 75% or more of the remaining economic life of the underlying asset is a major part of the remaining economic life of that underlying asset; and (ii) 90% or more of the fair value of the underlying asset comprises substantially all of the fair value of the underlying asset. Operating leases are included in operating lease right-of-use (“ROU”) assets, current operating lease liabilities and non-current operating lease liabilities in the Company’s consolidated balance sheets. ROU assets represent the right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. For leases with terms greater than 12 months, the Company records the ROU asset and liability at commencement date based on the present value of lease payments according to their term. The Company uses incremental borrowing rates based on the estimated rate of interest for collateralized borrowing over a similar term of the lease payments at commencement date. Lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expenses are recognized on a straight-line basis over the lease term or the useful life of the leased asset. In addition, the carrying amount of the ROU and lease liabilities are remeasured if there is a modification, a change in the lease term, a change in the in-substance fixed lease payments or a change in the assessment to purchase the underlying asset. j. Business combinations: The Company accounts for business combinations in accordance with ASC No. 805, “Business Combinations” (“ASC No. 805”). ASC No. 805 requires recognition of assets acquired, liabilities assumed, and any non-controlling interest at the acquisition date, measured at their fair values as of that date. The excess of the fair value of the purchase price over the fair values of the identifiable assets and liabilities is recorded as goodwill. Such valuations require management to make significant estimates and assumptions, especially with respect to intangible assets. Acquisition related costs are expensed in the statement of operations in the period incurred. k. Goodwill: Goodwill reflects the excess of the purchase price of a business acquired over the fair value of net assets acquired. Under ASC No. 350, “Intangibles – Goodwill and other” (“ASC No. 350”), goodwill is not amortized but is tested for impairment at least annually or more frequently if events or changes in circumstances indicate that the carrying value may be impaired. The Company has elected to perform an annual impairment test of goodwill as of December 31 of each year, or more frequently if impairment indicators are present. The Company operates in one operating segment and this segment comprises the Company’s sole reporting unit. The goodwill impairment test is performed according to the following principles: 1. An initial qualitative assessment may be performed to determine whether it is more likely than not that the fair value of the reporting unit is less than its carrying amount. 2. If the Company concludes it is more likely than not that the fair value of the reporting unit is less than its carrying amount, a quantitative fair value test is performed. An impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value is recognized. During the years ended December 31, 2022, 2021 and 2020, no impairment of goodwill was recorded. l. Intangible assets: The Company evaluates the recoverability of finite-lived intangible assets for possible impairment whenever events or circumstances indicate that the carrying amount of such assets may not be recoverable. The evaluation is performed at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. If such review indicates that the carrying amount of intangible assets is not recoverable, the carrying amount of such assets is reduced to fair value. The Company has not recorded any impairment charges of finite-lived intangible assets during the years ended December 31, 2022, 2021 and 2020. Acquired identifiable finite-lived intangible assets are amortized on a straight-line basis or accelerated method over the estimated useful lives of the assets. The basis of amortization approximates the pattern in which the assets are utilized, over their estimated useful lives. The Company routinely reviews the remaining estimated useful lives of finite-lived intangible assets. In case the Company reduces the estimated useful life for any asset, the remaining unamortized balance is amortized or depreciated over the revised estimated useful life. m. Impairment of long-lived assets: Property, plant and equipment and intangible assets subject to amortization are reviewed for impairment in accordance with ASC No. 360, “Accounting for the Impairment or Disposal of Long-Lived Assets”, whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of the assets to the future undiscounted cash flows expected to be generated by the assets. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. During the years ended December 31, 2022, 2021 and 2020, no impairment of long-lived assets and finite-lived intangible assets was recorded. n. Revenue recognition: The Company generates revenues from sales of systems, consumables and services, including software subscriptions and transaction-based revenues. The Company sells its products directly to end-users and indirectly through independent distributors, all of whom are considered end-users. The Company recognizes revenues in accordance with ASC No. 606, “Revenue from Contracts with Customers”. As such, the Company recognizes revenue under the core principle that transfer of control to the Company’s customers should be depicted in an amount reflecting the consideration the Company expects to receive in revenue. Therefore, the Company identifies a contract with a customer, identifies the performance obligations in the contract, determines the transaction price, allocates the transaction price to each performance obligation in the contract and recognizes revenues when, or as, the Company satisfies a performance obligation. For multiple performance obligations arrangements, such as selling a system with service contract, installation and training, the Company accounts for each performance obligation separately as it is distinct. The transaction price is allocated to each distinct performance obligation on a relative standalone selling price (“SSP”) basis and revenue is recognized for each performance obligation when control has passed, or service has been rendered. In most cases, the Company can establish SSP based on the observable prices of services sold separately in comparable circumstances to similar customers and for products based on the Company’s best estimates of the price at which the Company would have sold the product regularly on a stand-alone basis. The Company reassesses the SSP on a periodic basis or when facts and circumstances change. The Company does not account for training and installation as a separate performance obligation due to its immateriality in the context of its contracts. Accordingly, revenues from training and installation are recognized upon the delivery of its systems. The Company periodically provides customer incentive programs in the form of product discounts, volume-based rebates and warrants (see also note 11f), which are accounted for as a variable consideration that are deducted from revenue in the period in which the revenue is recognized. These reductions to revenue are made based upon estimates that are determined according to historical experience and the specific terms and conditions of the incentive. The Company maintains a provision for returns which is estimated, primarily based on historical experience as well as management judgment, and is recorded as a reduction of revenue. Such provision amounted to $1,084 and $2,178 as of December 31, 2022 and 2021, respectively, and is included under accrued expenses and other current liabilities in the consolidated balance sheets. Contract liabilities include amounts received from customers for which revenue has not yet been recognized. Contract liabilities amounted to $5,941 and $5,564 as of December 31, 2022 and 2021, respectively, and are presented under deferred revenues and customers advances and other non-current liabilities. During the year ended December 31, 2022, the Company recognized revenues in amount of $5,401, which have been included in the contract liabilities balance on January 1, 2022. In cases where the Company’s customers trade-in old systems as part of a sale of new systems, the fair value of the old systems is recorded as inventory, provided that such value can be recoverable. Revenue disaggregated by revenue source consists of the following: Year ended December 31, 2022 2021 2020 Systems $ 119,073 $ 181,445 $ 87,769 Ink and consumables 103,429 101,192 77,149 Service - spare parts 28,619 21,936 17,521 Service contracts and software subscriptions 20,397 17,433 10,892 Total revenue $ 271,518 $ 322,006 $ 193,331 The following table presents revenue disaggregated by geography based on customer location: Year ended December 31, 2022 2021 2020 U.S. $ 138,515 $ 211,294 $ 124,375 EMEA 93,243 78,686 45,859 Asia Pacific 24,396 23,341 14,211 Other 15,364 8,685 8,886 Total revenue $ 271,518 $ 322,006 $ 193,331 Sales to the Company’s independent distributors accounted for approximately 19%, 13% and 14% of 2022, 2021 and 2020 revenues, respectively. Remaining performance obligations represent contracted revenues that have not yet been recognized, and which includes deferred revenues and non-cancelable contracts that will be invoiced and recognized as revenue in future periods. The Company elected to apply the optional exemption under paragraph ASC 606-10-50-14(a) not to disclose the remaining performance obligations that relate to contracts with an original expected duration of one year or less for which deferred revenues have not been recorded yet. The following table represents the remaining performance obligations as of December 31, 2022, which are expected to be satisfied and recognized in future periods: 2023 2024 2025 and thereafter Service contracts and software subscriptions $ 4,429 $ 379 $ 86 o. Shipping and Handling: Shipping and handling fees charged to the Company’s customers are recognized as revenue in the period shipped and the related costs for providing these services are recorded as a cost of revenue. p. Cost of revenues: Cost of revenues is comprised mainly of cost of systems and parts, ink production, employees’ salaries and related costs, allocated overhead expenses, import taxes, inventory write-offs, royalties and shipping and handling fees. q. Warranty costs: The Company typically provides assurance type standard warranty for six months on its systems including parts and labor. A provision is recorded for estimated warranty costs at the time revenues are recognized based on historical warranty costs and management’s estimates. Factors that affect the Company’s warranty liability include the number of systems, historical rates of warranty claims and cost per claim. The Company periodically assesses the adequacy of its recorded warranty liabilities and adjusts the amounts thereof as necessary. The following are the changes in the liability for product warranty from January 1, 2021 to December 31, 2022: Balance at January 1, 2021 $ 1,650 Additions and adjustments to cost of revenues 8,897 Reduction for payments and costs to satisfy claims (5,935 ) Balance at December 31, 2021 $ 4,612 Additions and adjustments to cost of revenues 2,946 Reduction for payments and costs to satisfy claims (5,640 ) Balance at December 31, 2022 $ 1,918 r. Research and development expenses, net: Research and development expenses, net of government grants, are charged to the statement of operations, as incurred, except for development expenses which are capitalized as described in note 2s. s. Internal use software: The Company capitalizes qualifying costs incurred during the application development stage related to software developed for internal use. These costs are capitalized based on the qualifying criteria. Such costs are amortized over the software’s estimated life of three years. Costs incurred to develop software applications consist of (a) certain external direct costs of materials and services incurred in developing or obtaining internal-use computer software, and (b) payroll and payroll-related costs for employees who are directly associated with, and who devote time to, the development or implementation of the software. Capitalized internal-use software costs are included in intangibles assets, net in the consolidated balance sheet. t. Implementation costs incurred in cloud computing arrangement that is a service contract: The Company’s cloud computing arrangement (“CCA”) that is a service contract consists of an arrangement with third party vendors for internal use of their software applications that they host. The Company defers implementation costs incurred in relation to that arrangement, including costs for software application coding, configuration, integration and customization, while associated process reengineering, training, maintenance and data conversion costs are expensed. The short-term portion of deferred costs are included in prepaid expenses and other current assets in the consolidated balance sheets, while the long-term portion of deferred costs are included in other non-current assets. Amortized implementation costs incurred in CCA that are service contracts will be recognized using the straight-line method over eight years, which represents the noncancellable terms of the CCA, plus any optional renewal periods that the Company is reasonably certain to exercise. Deferred implementation costs are subject to assessment for potential impairment whenever events or changes in circumstances indicate that the carrying values may not be recoverable. Deferred implementation costs incurred in CCA that is a service contract amounted to $4,755 as of December 31, 2022. Amortization of the implementation costs incurred in CCA that is a service contract will commence on January 1, 2023. u. Accounting for share-based compensation: The Company accounts for share-based compensation in accordance with ASC No. 718, “Compensation - Stock Compensation” (“ASC No. 718”) that requires companies to estimate the fair value of equity-based payment awards on the date of grant using an option-pricing model. The value of the award is recognized as an expense over the requisite service periods in the Company’s consolidated statement of operations. The Company selected the binomial option pricing model as the most appropriate fair value method for its stock options awards with the following assumptions for the years ended December 31, 2022, 2021 and 2020: Year ended December 31, 2022 2021 2020 Suboptimal exercise multiple 2.8 2.5 1.5 Risk free interest rate 3.02%-4.09% 0.09%-1.36% 0.1%-0.5% Volatility 58.67%-69.13% 42.57%-58.49% 52% Dividend yield 0 0 0% The expected volatility is derived from the volatility of the Company’s share price based upon actual historical stock price movements. The computation of the suboptimal exercise multiple is derived from empirical studies, based on those studies, the early exercise factor of public companies is approximately 150% for managers and 100% for other employees. The interest rate for the period within the contractual life of the award is based on the U.S. Treasury Bills yield curve in effect at the time of grant. The Company currently has no plans to distribute dividends and intends to retain future earnings to finance the development of its business. The fair value of each restricted stock unit (“RSU”) including performance based RSUs is the market value of a single ordinary share of the Company, as determined based on the closing price of the Company’s ordinary shares on the date immediately prior to the day of grant. The Company recognizes compensation expenses for the value of its awards, which have graded vesting based on service conditions, using the straight-line method, over the requisite service period of each of the awards. The Company recognizes forfeitures of awards as they occur. v. Derivatives and hedging: The Company follows FASB ASC No. 815, “Derivatives and Hedging” which requires companies to recognize all of their derivative instruments as either assets or liabilities in the balance sheets at fair value. Accounting for changes in fair value (i.e., gains or losses) of a derivative instrument depends on whether it has been designated and qualifies as part of a hedging transaction and further, on the type of hedging transaction. For those derivative instruments that are designated and qualify as hedging instruments, a company must designate the hedging instrument, based upon the exposure being hedged, as a fair value hedge, cash flow hedge, or a hedge of a net investment in a foreign operation. Due to the Company’s global operations, it is exposed to foreign currency exchange rate fluctuations in the normal course of its business. The Company uses derivative financial instruments, specifically foreign currency forward and option contracts, to manage exposure to foreign currency risks, by hedging a portion of the Company’s forecasted payroll and related expenses denominated in New Israeli Shekels that it expects to incur within a year. The effect of exchange rate changes on foreign currency hedging contracts is expected to partially offset the effect of exchange rate changes on the underlying hedged item. For derivative instruments that are designated and qualify as a cash flow hedge (i.e., hedging the exposure to variability in expected future cash flows that is attributable to a particular risk), the gain or loss on the derivative instrument is reported as a component of other comprehensive income (loss) and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. Gains or losses from contracts that were not designated as hedging instruments are recognized in “financial income, net”. The Company measured the fair value of these contracts in accordance with ASC No. 820, “Fair Value Measurements and Disclosures” (“ASC No. 820”), and they were classified as level 2 of the fair value hierarchy. 1. Derivative instruments notional amounts: The following table summarizes the notional amounts for hedged items: December 31, 2022 2021 Designated cash flow hedges $ 38,465 $ 12,303 Non-designated hedges 491 - $ 38,956 $ 12,303 2. Derivative instrument outstanding: As of December 31, 2022 and 2021, the fair value of the Company’s outstanding forward and option contracts amounted to $1,000 and $317 which are included within “accrued expenses and other current liabilities” and “Prepaid expenses and other current assets”, respectively, on the balance sheets. 3. Derivative instrument gains and losses The following table sets forth the expense (income) from derivatives instruments included in the consolidated statements of operations: Year ended December 31, 2022 2021 2020 Cost of revenues $ 674 $ (33 ) $ (94 ) Research and development 1,029 (48 ) (48 ) Sales and marketing 365 (21 ) (21 ) General and administrative 481 (31 ) (31 ) The Company’s outstanding derivatives designated as cash flow hedging instruments and their related gains and losses, are reported in the statement of cash flows as cash flows from operating activities. The maximum length of time over which the Company hedges its exposure to the variability in future cash flows for forecasted transactions is less than 12 months. w. Advertising: Advertising costs are charged to operations as incurred and were $3,026, $2,691 and $2,273 for the years ended December 31, 2022, 2021 and 2020, respectively. x. Income taxes: The Company accounts for income taxes and uncertain tax positions in accordance with ASC No. 740, “Income Taxes” (“ASC No. 740”). ASC No. 740 prescribes the use of the liability method, whereby deferred tax asset and liability account balances are determined based on temporary differences between financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. The Company provides a valuation allowance, if necessary, to reduce deferred tax assets to amounts more likely than not to be realized. Deferred tax assets and liabilities are classified as non-current assets and liabilities, respectively. ASC No. 740 contains a two-step approach to recognizing and measuring a liability for uncertain tax positions. The first step is to evaluate the tax position taken or expected to be taken in a tax return by determining if the weight of available evidence indicates that it is more likely than not that, on an evaluation of the technical merits, the tax position will be sustained on audit, including resolution of any related appeals or litigation processes. The second step is to measure the tax benefit as the largest amount that is more than 50% likely to be realized upon ultimate settlement. The Company accrues interest and penalties related to unrecognized tax benefits on its taxes on income. y. Concentrations of credit risks: Financial instruments that potentially subject the Company and its subsidiaries to concentrations of credit risk consist principally of cash and cash equivalents, bank deposits, marketable securities, foreign exchange contracts and trade receivables. The majority of the Company’s and its subsidiaries’ cash and cash equivalents, bank deposits and marketable securities are invested in major banks in Israel and the U.S. Generally, these cash equivalents may be redeemed upon demand and, therefore management believes that they bear a lower risk. The Company attempts to limit its exposure to interest rate risk by investing in securities with maturities of less than four years; however, the Company may be unable to successfully limit its risk to interest rate fluctuations. At any time, a sharp rise in interest rates could have a material adverse impact on the fair value of its investment portfolio. Conversely, declines in interest rates could have a material favorable impact on the fair value of its investment portfolio. Increases or decreases in interest rates could have a material impact on interest earnings related to new investments during the period. The trade receivables of the Company and its subsidiaries are mainly derived from sales to customers located in the United States, Europe and Asia Pacific. The Company performs ongoing credit evaluations of its customers. In certain circumstances, the Company may require letters of credit from its customers, other collaterals or additional guarantees. The allowance for credit loss is based on the Company’s assessment of historical collection experience, customer creditworthiness, and current and future economic and market conditions. The Company regularly reviews the adequacy of the allowance for credit loss based on a combination of factors, including an assessment of the current customer’s aging balance, the nature and size of the customer and the financial status of the customer. Accounts receivable deemed uncollectable are charged against the allowance for credit loss when identified. The allowance for credit loss as of December 31, 2022 and 2021, amounted to $738 and $286, respectively. z. Transfers of financial assets: ASC 860 “Transfers and Servicing”, (“ASC 860”), establishes a standard for determining when a transfer of financial assets should be accounted for as a sale. The Company’s arrangements are such that the underlying conditions are met for the transfer of financial assets to qualify for accounting as a sale. The transfers of financial assets are typically performed by the factoring of receivables to two financial institutions. For the year ended December 31, 2022, and 2021, the Company sold trade receivables to financial institutions in a total net amount of $616 and $1,387, respectively. Control and risk of those trade receivables were fully transferred in accordance with ASC 860. During the year ended December 31, 2022, and 2021, the Company recorded an aggregate amount of $41 and $66, respectively, as financial expenses related to its factoring arrangements. aa. Severance pay: The Company’s employees in Israel have subscribed to Section 14 of Israel’s Severance Pay Law, 5723-1963 (“Section 14”). Pursuant to Section 14, the Company’s employees, covered by this section, are entitled only to monthly deposits, at a rate of 8.33% of their monthly salary, made on their behalf by the Company. Payments in accordance with Section 14 release the Company from any future severance liabilities in respect of those employees. Neither severance pay liability nor severance pay fund under Section 14 for such employees is recorded on the Company’s balance sheet. With regards to employees in Israel that are not subject to Se |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2022 | |
Business Combinations [Abstract] | |
ACQUISITIONS | NOTE ACQUISITIONS a. Custom Gateway: On August 7, 2020, the Company, through its wholly owned subsidiary Kornit Digital United Kingdom, acquired all the outstanding shares of Custom Gateway, a leading global provider of cloud-based software workflow solutions for both B2B and B2C business models. Under the related acquisition agreement, the total consideration was $16,884. In addition, the Company incurred acquisition-related costs in a total amount of $648. Acquisition-related costs included legal, accounting, consulting fees and other external costs related to the acquisition. Custom Gateway offers a cloud-based platform that enables content sourcing, creation, management and display at the front end. An order management system captures orders and uses proprietary algorithms to direct them to the appropriate production site. On the production floor, orders are routed and managed to facilitate efficient on-demand production on a mass scale. The technology enables customers to realize the full efficiency, scalability and profitability benefits of digitization by seamlessly connecting the front end, whether online or storefront, to the most suitable back-end element, such as on-demand production and logistics operations . The Company believes this acquisition will strategically accelerate its broad-scale development effort and strengthen its value proposition for brands, retailers and fulfillers in the area of digital transformation. The Company expects the combination of the Custom Gateway software workflow portfolio with its existing and future technologies to bring to the market an end-to-end solution for on-demand production. The purchase price allocation for the acquisition has been determined as follows: Fair value Tangible assets (liabilities): Cash $ 1,349 Account receivables and other receivables 761 Property and equipment 53 Trade payables and other payables (1,054 ) Deferred tax liabilities, net (952 ) Intangible assets: Technology 5,116 Non-competition 709 Goodwill 10,902 Total purchase price $ 16,884 Pro forma results of operations related to this acquisition have not been prepared because the acquisition was not material to the Company’s consolidated statements of operations. b. Voxel8 Inc. On August 10, 2021, the Company consummated the acquisition, pursuant to an asset purchase agreement, of certain assets of Voxel8 Inc., an advanced additive manufacturing technology for textiles, which allows for digital fabrication of functional features with zonal control of material properties, in addition to utilizing high-performance elastomers adhering to inkjet technology. Under the agreement, the Company’s U.S. subsidiary purchased the associated assets for a total consideration of $14,991 in cash. In addition, the Company incurred acquisition-related costs in a total amount of $212. Acquisition-related costs included legal, accounting, consulting fees and other external costs related to the acquisition. These transaction costs were included in general and administrative expenses in the consolidated statements of operations. The main reasons for this acquisition were to strengthen the Company’s ability to explore potential existing and new lucrative markets such as functional apparel and footwear, as well as to be able to offer versatility of decorative capabilities enabling the production of various functional applications on textile substrates. The Voxel8 acquisition was accounted for as a business combination in accordance with ASC 805 “Business Combinations”. Under business combination accounting principles, the total purchase price was allocated to Voxel8’s net tangible and intangible assets based on their estimated fair values as set forth below. The excess of the purchase price over the net tangible and identifiable intangible assets was recorded as goodwill, which is deductible for tax purposes. The following table summarizes the purchase price allocation for Voxel8 Acquisition: Fair value Tangible assets, net $ 1,448 Intangible assets: Technology - materials 1,795 Technology - systems 1,767 License 1,000 Goodwill 8,981 Total purchase price $ 14,991 Pro forma results of operations related to this acquisition have not been prepared because the acquisition was not material to the Company’s consolidated statements of operations. c. Tesoma GmbH: On April 5, 2022, the Company, through its wholly owned subsidiary Kornit Digital Technologies, acquired all of the outstanding shares of Tesoma GmbH, a German manufacturer of continuous dryers and oven systems. Under the related acquisition agreement, the total consideration was $15,443. In addition, the Company incurred acquisition-related costs in a total amount of $512. Acquisition-related costs include legal, accounting, consulting fees and other external costs directly related to the acquisition. These transaction costs were included in general and administrative expenses in the consolidated statements of operations. Tesoma generates revenues from several markets, including textile, mechanical engineering and automotive. The Company believes this acquisition will accelerate its value proposition for fulfillers in the area of dryers for the textile industry. The Tesoma acquisition was accounted for as a business combination in accordance with Accounting Standards Codification (“ASC”) 805 “Business Combinations”. ASC 805 requires recognition of assets acquired, liabilities assumed, and any non-controlling interest at the acquisition date, measured at their fair values as of that date. The excess of the fair value of the purchase price over the fair values of the identifiable assets and liabilities is recorded as goodwill. Such valuations require management to make significant estimates and assumptions, especially with respect to intangible assets. Acquisition related costs are expensed to the statement of operations in the period incurred. The following table summarizes the purchase price allocation of Tesoma Acquisition: Fair value Amortization period (years) Tangible assets (liabilities): Cash $ 789 Accounts receivable and other receivables 1,672 Inventory 3,991 Property and equipment 6,194 Other assets 343 Advance from customers (1,726 ) Trade payables (466 ) Provisions and other liabilities (717 ) Deferred tax liabilities, net (855 ) Net assets 9,225 Intangible assets: Customer Relationship 1,213 5.8 Technology 856 2.4 Backlog 432 0.5 Goodwill 3,717 Infinite Total purchase price $ 15,443 Goodwill is primarily attributable to expected synergies arising from technology integration and expanded product availability to the Company’s existing and new customers. Goodwill is not deductible for income tax purposes. Pro-forma results of operations related to this acquisition have not been prepared because they are not material to the Company’s consolidated statements of operations. |
Marketable Securities
Marketable Securities | 12 Months Ended |
Dec. 31, 2022 | |
Marketable Securities [Abstract] | |
MARKETABLE SECURITIES | NOTE 4:- MARKETABLE SECURITIES The following is a summary of marketable securities held as of December 31, 2022 and 2021: December 31, 2022 Amortized cost Gross unrealized gain Gross unrealized loss Fair value Matures within one year: Corporate debentures $ 13,394 $ - $ (176 ) $ 13,218 Government debentures 7,356 - (194 ) 7,162 20,750 - (370 ) 20,380 Matures after one through four years: Corporate debentures 254,909 12 (16,573 ) 238,348 Government debentures 8,115 - (493 ) 7,622 263,024 12 (17,066 ) 245,970 Total $ 283,774 $ 12 $ (17,436 ) $ 266,350 December 31, 2021 Amortized Cost Gross unrealized gain Gross unrealized loss Fair value Matures within one year: Corporate debentures $ 25,430 $ 170 $ - $ 25,600 Government debentures 2,507 9 - 2,516 27,937 179 - 28,116 Matures after one through four years: Corporate debentures 140,364 435 (1,090 ) 139,709 Government debentures 9,648 11 (99 ) 9,560 150,012 446 (1,189 ) 149,269 Total $ 177,949 $ 625 $ (1,189 ) $ 177,385 Investments with continuous unrealized losses for less than 12 months and 12 months or greater and their related fair values, were as follows as of December 31, 2022 and 2021: December 31, 2022 Less than 12 months More than 12 months Total Fair Value Unrealized Losses Fair value Unrealized losses Fair value Unrealized losses Corporate debentures $ 143,402 $ (7,666 ) $ 103,890 $ (9,083 ) $ 247,292 $ (16,749 ) Government debentures 6,735 (317 ) 8,048 (370 ) 14,783 (687 ) Total $ 150,137 $ (7,983 ) $ 111,938 $ (9,453 ) $ 262,075 $ (17,436 ) December 31, 2021 Less than 12 months More than 12 months Total Fair value Unrealized Losses Fair value Unrealized losses Fair value Unrealized losses Corporate debentures $ 114,199 $ (1,075 ) $ 1,063 $ (15 ) $ 115,262 $ (1,090 ) Government debentures 6,524 (91 ) 2,523 (8 ) 9,047 (99 ) Total $ 120,723 $ (1,166 ) $ 3,586 $ (23 ) $ 124,309 $ (1,189 ) |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | NOTE 5:- FAIR VALUE MEASUREMENTS The table below sets forth the Company’s assets and liabilities that were measured at fair value as of December 31, 2022 and 2021 by level within the fair value hierarchy. December 31, 2022 Level 1 Level 2 Level 3 Total Assets: Cash and cash equivalents $ 104,597 - - $ 104,597 Short-term bank deposits 275,033 - - 275,033 Marketable securities - $ 266,350 - 266,350 Total financial assets $ 379,630 $ 266,350 $ - $ 645,980 Liabilities: Foreign currency derivative contracts - $ (1,000 ) - $ (1,000 ) December 31, 2021 Level 1 Level 2 Level 3 Total Assets: Cash and cash equivalents $ 611,551 $ - $ - $ 611,551 Short-term bank deposits 9,168 - - 9,168 Marketable securities - 177,385 - 177,385 Foreign currency derivative contracts - 317 - 317 Total financial assets $ 620,719 $ 177,702 $ - $ 798,421 |
Inventories, Net
Inventories, Net | 12 Months Ended |
Dec. 31, 2022 | |
Inventory Disclosure [Abstract] | |
INVENTORIES, NET | NOTE 6:- INVENTORIES, NET December 31, 2022 2021 Raw materials and components $ 47,737 $ 29,857 Finished goods (*) 41,678 33,160 $ 89,415 $ 63,017 (*) Includes amounts of $405 and $654 as of December 31, 2022 and 2021, respectively, with respect to inventory delivered to customers for which revenue was not yet recognized. |
Property, Plant and Equipment,
Property, Plant and Equipment, Net | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT, NET | NOTE 7:- PROPERTY, PLANT AND EQUIPMENT, NET December 31, 2022 2021 Cost: Computer and peripheral equipment $ 10,629 $ 8,092 Office furniture and equipment 4,988 3,268 Machinery and equipment 37,702 28,474 Leasehold improvements 21,373 16,061 Building and land 19,947 12,744 94,639 68,639 Accumulated depreciation (34,176 ) (23,593 ) Property, plant and equipment, net $ 60,463 $ 45,046 Depreciation expenses for the years ended December 31, 2022, 2021 and 2020 were $10,583, $5,252, and $3,492, respectively. |
Intangible Assets, Net
Intangible Assets, Net | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS, NET | NOTE 8:- INTANGIBLE ASSETS, NET a. Intangible assets are comprised of the following: December 31, 2022 2021 Original amount: Acquired technology $ 10,534 $ 10,244 License 1,000 1,000 Customer relationships 4,717 3,504 Non-competition agreement 974 974 Software development costs 1,320 1,320 Distribution rights 688 380 $ 19,233 $ 17,422 Accumulated amortization: Acquired technology 3,276 2,355 License 165 46 Customer relationships 3,534 3,268 Non-competition agreement 833 596 Software development costs 1,285 844 Distribution rights 250 250 9,343 7,359 Intangible assets, net $ 9,890 $ 10,063 Amortization expenses for the years ended December 31, 2022, 2021 and 2020 were $2,982 , b. Amortization expenses for future periods are as shown below: Years ending December 31, Amount 2023 $ 2,249 2024 1,923 2025 1,539 2026 1,538 2027 1,537 2028 and thereafter 1,104 $ 9,890 |
Accrued Expenses and Other Paya
Accrued Expenses and Other Payables | 12 Months Ended |
Dec. 31, 2022 | |
Accrued Expenses and Other Payables [Abstract] | |
ACCRUED EXPENSES AND OTHER PAYABLES | NOTE 9:- ACCRUED EXPENSES AND OTHER PAYABLES December 31, 2022 2021 Accrued expenses $ 16,103 $ 6,838 Government authorities 4,984 3,221 Warranty provision 1,531 3,640 Provision for returns 1,084 2,178 Professional services 1,890 1,410 $ 25,592 $ 17,287 |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENT LIABILITIES | NOTE 10:- COMMITMENTS AND CONTINGENT LIABILITIES a. Charges: As of December 31, 2022, the Company had a line of credit with an Israeli bank for total borrowings of up to 6 million ILS, all of which was undrawn as of December 31, 2022. This line of credit is unsecured and available subject to (i) the Company’s maintenance of a 30% ratio of total tangible shareholders’ equity to total tangible assets, and (ii) the total credit use being less than 70% of the Company’s and its subsidiaries’ receivables. Interest rates across this credit line varied from 0.3% to 5.45% as of December 31, 2022. b. Purchase commitments: As of December 31, 2022, the Company had $83,758 of purchase commitments for goods and services from vendors. These commitments are due primarily within one year. c. Litigation: From time to time, the Company is party to various legal proceedings, claims and litigation that arise in the normal course of business. It is the opinion of management that the ultimate outcome of these matters will not have a material adverse effect on the Company’s financial position, results of operations or cash flows. d. Royalty Commitments: Under the Company’s agreement for purchasing print heads and other products, which was amended in 2016, the Company is obligated to pay 2.5% royalties of its annual ink revenues up to maximum annual amount of $625. Royalties expenses for each of the years ended December 31, 2022, 2021 and 2020 were $625. e. Guarantees: As of December 31, 2022, the Company provided five bank guarantees in a total amount of $846 primarily for its rented facilities. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2022 | |
Stockholders' Equity Note [Abstract] | |
SHAREHOLDERS’ EQUITY | NOTE 11:- SHAREHOLDERS’ EQUITY a. Company’s shares: 1. Ordinary shares: Any ordinary share confers equal rights to dividends and bonus shares and to participate in the distribution of surplus assets upon liquidation in proportion to the par value of each share regardless of any premium paid thereon, all subject to the provisions of the Company’s articles of association. Each ordinary share confers its holder the right to participate the general meetings of the shareholders of the Company, with one vote on any matter presented to the shareholders. 2. On September 16, 2020, the Company closed a follow-on offering that had a secondary component. In the offering, the Company issued and sold to the public 2,999,999 ordinary shares for aggregate net proceeds of $161,981, net of underwriting discounts, commissions and offering expenses. In addition, in the secondary component of the offering, 1,689,942 ordinary shares that were issued pursuant to the exercise of warrants were sold by the Company’s global customer. The Company did not receive any of the proceeds from the sale of these additional ordinary shares. 3. On November 19, 2021, the Company closed a follow-on offering where 2,336,892 ordinary shares were issued and sold by the Company to the public for an aggregate net amount of $339,760. In addition, 705,953 ordinary shares that were issued to a customer pursuant to exercise of its warrants were sold by the Company’s customer. The Company did not receive any of the proceeds from the sale of these additional ordinary shares by the customer. b. Share option and RSU’s plans: The Company’s Board of Directors has approved equity incentive plans pursuant to which the Company is authorized to issue to employees, directors and officers of the Company and its subsidiaries (the “optionees”) options to purchase ordinary shares of the company, at an exercise price equal to at least the fair market value of the ordinary shares at the date of grant. The terms of option grants generally provide that 25% of total options are exercisable one year after the grant or vesting start date determined for each optionee and a further 6.25% is exercisable at the end of each subsequent three-month period over the following 3 years. Options are exercisable for up to 10 years from the grant date. Options that are cancelled or forfeited before expiration become available for future grants. Under the company equity incentive plans, beginning in 2017, the Company grants RSU’s, including performance-based RSUs. The RSU’s generally vest over a period of four years of employment and performance-based RSU’s vest also based on performance targets. RSU’s that are cancelled or forfeited become available for future grants. During December 2022, the Company’s board of directors approved a decrease of 1,065,982 as to the number of ordinary shares reserved for issuance under the Company’s equity incentive plans. As of December 31, 2022, an aggregate of 3,567,317 ordinary shares were available for future grants under those plans. c. A summary of the Company’s share option activity and related information is as follows: Number of shares upon exercise Weighted average exercise price Weighted- average remaining contractual term (in years) Aggregate intrinsic value Outstanding at beginning of year 413,175 $ 19.58 5.79 $ 54,815 Granted 356,933 95.04 - - Exercised (38,559 ) 17.86 - 1,086 Forfeited (63,227 ) 99.63 - - Outstanding at end of year 668,322 $ 52.66 6.68 $ 2,310 Exercisable at end of year 339,777 $ 17.66 4.42 $ 2,288 As of December 31, 2022, the Company had $11,357 of unrecognized compensation expense related to non-vested share options expected to be recognized over a weighted average period of 3.05 years. The weighted average fair value of options granted during the years ended December 31, 2022, 2021 and 2020 was $47.06, $64.93 and $31.55 per share, respectively. The total intrinsic value of options exercised during the years ended December 31, 2022, 2021 and 2020 was $1,086, $27,181 and $12,698, respectively. d. A summary of the Company’s RSU’s activity is as follows: Number Unvested at beginning of year 684,666 Granted 827,504 Vested (295,108 ) Forfeited (166,723 ) Unvested at the end of the year 1,050,339 The weighted average fair value at grant date of RSU’s granted for the years ended December 31, 2022, 2021 and 2020 was $43.65, $115.65 and $40.93, respectively. The total fair value of RSU’s vested during the year ended December 31, 2022, was $1,338. The weighted average fair value of RSU’s vested during the years ended December 31, 2022, 2021 and 2020 was $57.98, $31.63 and $24.52, respectively. As of December 31, 2022, the Company had $43,865 of unrecognized compensation expenses related to RSU’s, expected to be recognized over a weighted average period of 2.78 years. e. The following table sets forth the total share-based compensation expense included in the consolidated statements of operations for the years ended December 31, 2022, 2021 and 2020: Year ended December 31, 2022 2021 2020 Cost of products $ 2,185 $ 1,355 $ 1,056 Cost of services 1,676 1,105 771 Research and development, net 5,312 2,685 1,712 Sales and marketing 7,361 5,004 2,893 General and administrative 6,115 4,984 3,604 Total share-based compensation expenses $ 22,649 $ 15,133 $ 10,036 f. On January 10, 2017, the Company signed a master purchase agreement with Amazon Inc. under which 2,932,176 warrants to purchase ordinary shares of the Company at an exercise price of $13.04 were issued to Amazon as a customer incentive. The warrants are subject to vesting as a function of payments for purchased products and services of up to $150 million over a five-year period beginning on May 1, 2016, with the shares vesting incrementally each time Amazon makes a payment totaling $5 million to the Company. On September 16, 2020 Amazon Inc. exercised 2,162,463 warrants via cashless exercise and sold all 1,689,942 shares received upon that exercise. On November 19, 2021 Amazon Inc. exercised 769,713 warrants via cashless exercise and sold all 705,953 shares received upon that exercise. As of December 31, 2022, all of the warrants under that original master purchase agreement had been exercised. On September 14, 2020, the Company signed an amendment to the master purchase agreement with Amazon Inc. under which an additional 3,401,028 warrants to purchase ordinary shares of the Company at an exercise price of $59.26 were issued to Amazon as a customer incentive. The warrants are subject to vesting as a function of payments for purchased products and services of up to $400 million over a five-year period beginning on January 2021, with the shares vesting incrementally each time Amazon makes a payment totaling $5 million to the Company. As of December 31, 2022, 1,515,870 warrants were exercisable under the amendment to the master purchase agreement. The fair value of the warrants was measured on the grant date using the Monte Carlo simulation with assumptions of risk-free rate of 0.4%, volatility rate of 52%, dividend yield of 0% and expected term of 5.32 years. The Company recognized a reduction to revenues of $22,500, $25,423 and $5,366 during the years ended December 31, 2022, 2021 and 2020, respectively, in respect of the warrants granted to Amazon. The total unrecognized amount to be recognized as a reduction to revenues related to the warrants granted to Amazon amounted to $61,675 as of December 31, 2022. |
Earnings (Losses) Per Share
Earnings (Losses) Per Share | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
EARNINGS (LOSSES) PER SHARE | NOTE 12:- EARNINGS (LOSSES) PER SHARE The following table sets forth the computation of basic and diluted earnings (losses) per share: Year ended December 31, 2022 2021 2020 Numerator for basic and diluted earnings (losses) per share: Net income (loss) $ (79,065 ) $ 15,527 $ (4,783 ) Weighted average ordinary shares outstanding: Denominator for basic earnings (losses) per share 49,791,659 47,079,358 42,286,275 Effect of dilutive securities: Employee share options, RSUs, PSUs and Warrants - 1,520,737 - Denominator for diluted earnings (losses) per share 49,791,659 48,600,095 42,286,275 Basic earnings (losses) per share $ (1.59 ) $ 0.33 $ (0.11 ) Diluted earnings (losses) per share $ (1.59 ) $ 0.32 $ (0.11 ) |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2022 | |
Stockholders' Equity Note [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | NOTE 13:- ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The following table summarizes the changes in accumulated balances of other comprehensive income (loss), net of taxes, for the year ended December 31, 2022: Unrealized Gains Unrealized Gains Foreign Total Beginning balance $ (522 ) $ 293 $ 800 $ 571 Other comprehensive income before reclassifications (16,912 ) (3,450 ) - (20,362 ) Amounts reclassified from accumulated other comprehensive income 10 2,357 - 2,367 Net current period other comprehensive income (16,902 ) (1,093 ) - (17,995 ) Ending Balance $ (17,424 ) $ (800 ) $ 800 $ (17,424 ) |
Leases
Leases | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
LEASES | NOTE 14:- LEASES The Company’s leases include offices and warehouses for its facilities worldwide, as well as car leases, which are all classified as operating leases. Certain leases include renewal options that are subject to the Company’s sole discretion. The renewal options were included in the right of use (“ROU”) and liability calculation if it was reasonably certain that the Company will exercise the option. The components of lease expenses for the years ended December 31, 2022, 2021 and 2020 were as follows: Year ended December 31, 2022 2021 2020 Operating lease $ 6,126 $ 5,085 $ 4,544 Short-term lease 297 264 34 Total lease expense $ 6,423 $ 5,349 $ 4,578 Cash paid for amounts included in the measurement of operating lease liabilities was $6,282, $5,490 and $4,635 during the years ended December 31, 2022, 2021 and 2020, respectively. The Company’s operating lease agreements have remaining lease terms ranging from one to eight years. Some of these agreements include allowances, such as, the Company’s option to extend the leases for additional terms, of up to five years. As of December 31, 2022, the weighted average remaining lease term is approximately 6.9 years, and the weighted average discount rate is 2.6 percent. The discount rate was determined based on the estimated collateralized borrowing rate of the Company, adjusted to the specific lease term and location of each lease. Maturities of operating lease liabilities as of December 31, 2022 were as follows: 2023 $ 5,563 2024 4,884 2025 3,999 2026 2,982 2027 2,878 Thereafter 8,094 Total operating lease payments $ 28,400 Less - imputed interest (2,376 ) Present value of future lease payments $ 26,024 As of December 31, 2022 the Company has entered into operating lease agreements that have not yet commenced with estimated lease obligations of approximately $8 million. These operating lease agreements will commence in 2023 with a lease term of up to ten years, including an option for a five-year extension. |
Taxes on Income
Taxes on Income | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
TAXES ON INCOME | NOTE 15:- TAXES ON INCOME a. Tax rates: Taxable income of the Company and its Israeli subsidiary is subject to Israeli corporate tax at the rate of 23%. The Company and its Israeli subsidiary are also eligible for tax benefits as further described in note 15b. b. Tax benefits under the Law for the Encouragement of Capital Investments, 1959 (the “Law”): The Company’s production facilities in Israel have been granted “Beneficiary Enterprise” status under the Law. The Company and its Israeli subsidiary have been granted benefits under the “Alternative Benefit Track” under which the main benefits are a tax exemption for undistributed income and a reduced tax rate. The Company and its Israeli subsidiary began to utilize such tax benefits in 2010. The entitlement to the above benefits was limited to the end of 2019, and was conditional upon the Company and its Israeli subsidiary fulfilling the conditions stipulated by the Law and related regulations. In the event of failure to comply with these conditions, the benefits may be partially or fully canceled and the Company or its Israeli subsidiary may be required to refund the amount of the benefits, in whole or in part, plus a consumer price index linkage adjustment and interest. In the event of distribution of any dividends, the amount distributed which is allocated to the above-mentioned tax-exempt income, on a prorate basis, will be subject to the same reduced corporate tax rate that would have been applied to the Beneficiary Enterprise’s income. In addition, tax-exempt income attributed to the Beneficiary Enterprise will subject the Company to taxes upon distribution in any manner including complete liquidation. On November 15, 2021, a new amendment of the Law was enacted harshening the rules with respect to determining the profits from which a dividend was distributed and providing that part of any dividend distribution will be deemed as distributed from the Trapped Profits, according to a certain formula. The Israeli government agreed to grant relief of 30%-60% on the amount of tax which should have been paid on distributable earnings in order to encourage companies to pay the reduced taxes during the next 12 months (the “Temporary Order”). The Temporary Order provides partial relief from Israeli corporate income tax for companies which opt to enjoy the privilege, on a linear basis: greater release of “trapped” earnings will result in a higher relief from corporate income tax. According to the new linear statutory formula, the corporate income tax to be paid, would vary from 6% to 17.5% effective tax rate (depends on the Company’s corporate tax rate in the year in which the income was derived and the amount of “trapped” retained earnings elected to be relieved), without taking into account the 20% dividend withholding tax (which should be levied only upon actual distribution, if any). The reduced corporate tax is payable within 30 days of making the election. The new Temporary Order does not require the actual distribution of the retained earnings, nor does it provide any relief from the 20% dividend withholding tax. The partial corporate income tax relief was available to companies that elected to implement the temporary reduced tax relief by November 15, 2022 in respect of its exempt retained earnings, provided that up to 30% (the exact rate is calculated by a new statutory formula) of the “released” earnings are re-invested in Israel in at least one of the following: Industrial activities, Research and development activities, Assets used by the company, salaries of newly recruited employees, for a period of up to 5 years. During November 2022, the Company applied the Temporary Order to its exempt profits accrued prior to 2022 by the Company and its Israeli subsidiary. Consequently, the Company paid of $11,485 corporate tax on exempt income of $133,751. The Company’s Israeli subsidiary elected to apply the Preferred Enterprise regime under the January 2011 amendment to the Law as of the 2013 tax year. The election is irrevocable. Under the Preferred Enterprise regime, a preferred income of an Enterprise located in the center of Israel is subject to the tax rate of 16%. The 2017 Amendment provides that a technology company satisfying certain conditions will qualify as a Preferred Technology Enterprise and will thereby enjoy a reduced corporate tax rate of 12% on income that qualifies as “Preferred Technology Income”, as defined in the Law. The tax rate is further reduced to 7.5% for a Preferred Technology Enterprise located in development zone A. These corporate tax rates shall apply only with respect to the portion of the Preferred Technology Income derived from R&D developed in Israel. In addition, a Preferred Technology Company will enjoy a reduced corporate tax rate of 12% on capital gain derived from the sale of certain “Benefitted Intangible Assets” (as defined in the Law) to a related foreign company if the Benefitted Intangible Assets were acquired from a foreign company on or after January 1, 2017 for at least NIS 200 million, and the sale receives prior approval from the National Authority for Technological Authority (previously known as the Israeli Office of the Chief Scientist), referred to as the Innovation Authority . Dividends distributed by a Preferred Technology Enterprise, paid out of Preferred Technology Income, are generally subject to withholding tax at source at the rate of 20% or such lower rate as may be provided in an applicable tax treaty (subject to the receipt in advance of a valid certificate from the Israel Tax Authority allowing for a reduced tax rate). However, if such dividends are paid to an Israeli company, no tax is required to be withheld (although, if such dividends are subsequently distributed from such Israeli company to individuals or a non-Israeli company, withholding tax at a rate of 20% or such lower rate as may be provided in an applicable tax treaty will apply). The Company and its Israeli subsidiary believe they meet the conditions for “Preferred Technological Enterprises”, and are subject to a tax rate of 12% on income that qualifies as “Preferred Technology Income”, as defined in the Law. The tax rate for a Preferred Technological Enterprises located in development zone A is 7.5%. From time to time, the Israeli Government discusses reducing the benefits available to companies under the Law. The termination or substantial reduction of any of the benefits available under the Law could materially increase the Company’s tax liabilities. c. Tax benefits under the Israeli Law for the Encouragement of Industry (Taxation), 1969: Each of the Company and its Israeli subsidiary is an “Industrial Company” as defined by the Israeli Law for the Encouragement of Industry (Taxation), 1969, and, as such, is entitled to certain tax benefits including accelerated depreciation, deduction of public offering expenses in three equal annual installments and amortization of other intangible property rights for tax purposes. In addition, these Israeli companies are eligible to submit consolidated tax returns, allowing the offsetting of losses between the entities. d. Income taxes of non-Israeli subsidiaries: The Company’s non-Israeli subsidiaries are taxed according to the tax laws in their respective countries of residence. Taxes were not provided for undistributed earnings of the Company’s foreign subsidiaries. The Company’s board of directors has determined that the Company does not currently intend to distribute any amounts of its undistributed earnings as a dividend. The Company intends to reinvest these earnings indefinitely in the foreign subsidiaries. Accordingly, no deferred income taxes have been provided. If these earnings were distributed into Israel in the form of dividends or otherwise, the Company would be subject to additional Israeli income taxes (subject to an adjustment for foreign tax credits) and foreign withholding taxes. The amount of undistributed earnings of foreign subsidiaries that are considered to be reinvested as of December 31, 2022 was $17,734. If these undistributed earnings are distributed, they would be taxed at the corporate tax rate applicable to such income, and $2,211 of additional taxes would be incurred as of December 31, 2022. e. Tax assessments: The Company and its Israeli subsidiary received final tax assessments through 2021. The U.S subsidiary, Tesoma GmbH and German subsidiary received final tax assessments through 2018, 2019 and 2020, respectively, and the Hong Kong, Japan and U.K subsidiaries have not received a final tax assessment since inception. f. Carryforward losses for tax purposes: As of December 31, 2022, the Company and its Israeli subsidiary have carryforward tax losses of approximately $98,500. As of December 31, 2022, Custom Gateway Ltd has carryforward tax losses of approximately $6,300. As of December 31, 2022, Kornit Digital UK Ltd has carryforward tax losses of approximately $900. As of December 31, 2022, Tesoma GmbH has carryforward tax losses of approximately $200. g. Deferred income taxes: Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s and its subsidiaries’ deferred tax liabilities and assets are as follows: December 31, 2022 2021 Deferred tax assets: Carryforward tax losses $ 9,494 $ 4,426 Share-based compensation expenses 1,853 934 Research and development carryforward expenses 3,605 2,666 Allowance and other reserves 6,672 2,685 Operating lease liabilities 2,622 2,820 Total gross deferred tax assets 24,246 13,531 Less, Valuation Allowance (19,735 ) - Total deferred tax assets 4,511 13,531 Deferred tax liabilities: Operating lease ROU assets (2,690 ) (2,670 ) Intangible assets (1,539 ) (1,007 ) Others (826 ) (515 ) Total gross deferred tax liabilities (5,055 ) (4,192 ) Net deferred tax assets (liabilities) $ (544 ) $ 9,339 In assessing the ability to realize deferred tax assets, the Company considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. Based on the available evidence, management believes that it is more likely than not that its deferred tax assets will not be realized and accordingly, a valuation allowance has been provided. Income (loss) before income taxes is comprised as follows: Year ended December 31, 2022 2021 2020 Domestic $ (58,085 ) $ 10,334 $ (6,926 ) Foreign 1,585 5,058 3,695 Income (loss) before income taxes $ (56,500 ) $ 15,392 $ (3,231 ) h. Taxes on income (tax benefits) are comprised as follows: Year ended December 31, 2022 2021 2020 Current taxes $ 12,619 $ (550 ) $ 210 Deferred taxes 9,946 415 1,342 $ 22,565 $ (135 ) $ 1,552 Domestic $ 20,400 $ 322 $ 1,360 Foreign 2,165 (457 ) 192 $ 22,565 $ (135 ) $ 1,552 Year ended December 31, 2022 2021 2020 Domestic taxes: Current taxes $ 11,119 $ (1,171 ) $ 16 Deferred taxes 9,281 1,493 1,344 20,400 322 1,360 Foreign taxes: Current taxes 1,500 621 194 Deferred taxes 665 (1,078 ) (2 ) 2,165 (457 ) 192 Taxes on income $ 22,565 $ (135 ) $ 1,552 i. Uncertain tax positions: A reconciliation of the beginning and ending amount of gross unrecognized tax benefits is as follows: December 31, 2022 2021 Beginning of year $ 1,034 $ 4,357 Additions related to tax positions taken during current year 312 613 Reduction related to settlements of tax matters - (1,286 ) Reductions for tax positions of prior years (952 ) (2,650 ) Balance at December 31(*) $ 394 $ 1,034 (*) As of December 31, 2022, and 2021 unrecognized tax benefits in an amount of $131 and $788, respectively, were presented as a reduction from deferred taxes. The amount of the unrecognized tax benefits could affect the Company’s income tax provision and the effective tax rate. Exchange rate differences are recorded within financial income, net, while interest is recorded within income tax expense. The final tax outcome of the Company’s tax audits could be different from that which is reflected in the Company’s income tax provisions and accruals. Such differences could have a material effect on the Company’s income tax provision and net income in the period in which such determination is made. j. A reconciliation between the theoretical tax expense, assuming all income is taxed at the statutory tax rate applicable to income of the Company and the actual tax expense as reported in the statement of operations is as follows: Year ended December 31, 2022 2021 2020 Income (loss) before taxes, as reported in the consolidated statements of operations $ (56,500 ) $ 15,392 $ (3,231 ) Theoretical tax expense (benefit) at the Israeli statutory tax rate (12,995 ) 3,540 (741 ) Beneficiary enterprise expenses (benefit) 9,003 (560 ) (68 ) Tax adjustment in respect of different tax rate of foreign subsidiaries 639 309 (94 ) Non-deductible expenses and other permanent differences (289 ) (1,808 ) (278 ) Share based compensation 541 355 1,485 Increase (decrease) in other uncertain tax positions, net (639 ) (2,037 ) 1,318 Taxes related to prior years (see also note 15b) 11,471 - - Losses and timing differences for which valuation allowance was provided 15,727 - - Others (893 ) 66 (70 ) Actual tax expense (benefit) $ 22,565 $ (135 ) $ 1,552 |
Geographic Information
Geographic Information | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
GEOGRAPHIC INFORMATION | NOTE 16:- GEOGRAPHIC INFORMATION Summary information about geographic areas: The Company operates in one reportable segment (see note 1 for a brief description of the Company’s business). Operating segments are defined as components of an enterprise for which separate financial information is evaluated regularly by the chief operating decision maker, who is the Company’s chief executive officer, in deciding how to allocate resources and in assessing performance. The Company’s chief operating decision maker evaluates the Company’s financial information and resources and assesses the performance of these resources on a consolidated basis. The following table presents long-lived assets by geographic region as of December 31, 2022 and 2021: December 31, 2022 2021 U.S. $ 6,202 $ 6,433 Israel 70,722 61,339 EMEA 9,720 1,787 Asia Pacific 958 642 $ 87,602 $ 70,201 Major customers’ data as a percentage of total revenues: The following table sets forth the customers that accounted for 10% or more of the Company’s total revenues in each of the years set forth below: Year ended December 31, 2022 2021 2020 Customer A 27 % 27 % 11 % Customer B 2 % 12 % 11 % |
Financial Income, Net
Financial Income, Net | 12 Months Ended |
Dec. 31, 2022 | |
Condensed Financial Income [Abstract] | |
FINANCIAL INCOME, NET | NOTE 17:- FINANCIAL INCOME, NET Financial income, net: Year ended December 31, 2022 2021 2020 Financial income: Interest on bank deposits and other $ 6,586 $ 2,129 $ 2,238 Exchange rate differences, net 2,426 - - Realized gain on sale of marketable securities, net - 32 503 Interest on marketable securities 6,465 3,243 2,870 15,477 5,404 5,611 Financial expenses: Bank charges (265 ) (286 ) (357 ) Exchange rate differences, net - (1,240 ) (1,361 ) Realized loss on sale of marketable securities, net (10 ) - - Amortization of premium and accretion of discount on marketable securities, net (1,820 ) (1,279 ) (395 ) (2,095 ) (2,805 ) (2,113 ) Total financial income, net: $ 13,382 $ 2,599 $ 3,498 |
Balances and Transactions with
Balances and Transactions with Related Parties | 12 Months Ended |
Dec. 31, 2022 | |
Related Party Transactions [Abstract] | |
BALANCES AND TRANSACTIONS WITH RELATED PARTIES | NOTE 18:- BALANCES AND TRANSACTIONS WITH RELATED PARTIES The Company’s policy is to enter into transactions with related parties on terms that, on the whole, are no less favorable than those available from unaffiliated third parties. Based on the Company’s experience in the business sectors in which it operates and the terms of its transactions with unaffiliated third parties, the Company believes that all of the transactions described below met this policy at the time they occurred. 1. Fritz Companies Israel T. Ltd. (“Fritz”) Fritz is a logistics company which is owned, in part, by the Chairman of the Board since March 2018. The Company has an ongoing logistic contract with Fritz. During the years ended December 31, 2022, 2021 and 2020 logistic service fees amounted to $4,263, $5,369 and $4,096, respectively. As of December 31, 2022 and 2021, the Company had trade payables balances due to this related party in the amounts of $259 and $1,178, respectively. 2. Accord Insurance Agency Ltd. (“Accord”) The Company maintains a business relationship with Accord Insurance Agency Ltd., or Accord, a company which is an insurance agency that is owned in part and controlled by the Company’s Chairman of the Board. Accord is the Company’s insurance agent for most of its insurance policies. During the years ended December 31, 2022, 2021 and 2020, the total fees paid to Accord under the policies amounted to $520, $423 and $838, respectively. 3. Priority Software Ltd. (“Priority”) Priority is the Company’s ERP solution provider, which is owned, in part by a few of the Company’s Board members. During the years ended December 31, 2022, 2021 and 2020 maintenance fees and additional licenses acquired amounted to $34, $221 and $100, respectively. As of December 31, 2022 and 2021, the Company had trade payables balances due to this related party in the amount of $0. 4. Tritone Technologies Ltd. (“Tritone”) On September 13, 2020 the Company entered into a sublease agreement with Tritone Technologies Ltd., whose CEO is Mr. Ofer Ben Zur, a director of the Company, and one of whose shareholders is an equity fund controlled by the Chairman of the Board, for the sublease of 192 square meters in Rosh Ha’Ayin. The term of the related lease was extended until January 31, 2023. The rent under the sublease is $2 per month, in addition to the rent for the related lease that is covered by the sublessee. The sublease agreement is carried out on a “back-to-back” basis, as the Company pays over the rent that it receives directly to its landlord. As of December 31, 2022, and 2021, the Company had trade receivables balances due from this related party in the amounts of $9 and $5, respectively. 5. Magalcom Ltd. (“Magalcom”) The Company entered into a transaction with Magalcom which is owned, in part and controlled, by the Company’s Chairman of the Board, for the replacement of communication equipment in the Company’s conference rooms. Total consideration to be paid to Magalcom pursuant to this transaction is approximately $650. During the year ended December 31, 2022, service fees under the transaction amounted to $182. As of December 31, 2022, and 2021, the Company had a trade payable balance due to this related party in the amounts of $0 and $282, respectively . |
Subsequent Event
Subsequent Event | 12 Months Ended |
Dec. 31, 2022 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENT | NOTE 19:- SUBSEQUENT EVENT During February 2023, two securities class action complaints were filed by certain shareholders of the Company in U.S. federal court in New Jersey against the Company, certain of the Company’s current and former officers and directors, the underwriters of the November 19, 2021 follow-on public offering and Amazon (which sold shares in that public offering), as defendants. The complaints assert claims under certain sections of the Exchange Act and seeks unspecified damages. These lawsuits are at preliminary stages, and the Company believes these lawsuits are without merit and intends to defend these cases vigorously. As of the date hereof, the Company is unable to estimate a range of loss, if any, that could result were there to be adverse final decisions in these cases, and estimated liabilities have not been recorded in the consolidated financial statements. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Significant Accounting Policies [Abstract] | |
Use of estimates | a. Use of estimates: The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates, judgments and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the period. The Company’s management believes that the estimates, judgments and assumptions used are reasonable based upon information available at the time they are made. Actual results could differ from those estimates. On an ongoing basis, the Company’s management evaluates estimates, including those related to intangible assets and goodwill . |
Financial statements in United States dollars | b. Financial statements in United States dollars: Most of the revenues of the Company and its subsidiaries are denominated in U.S. dollars. The U.S. dollar is the primary currency of the economic environment in which the Company and its subsidiaries operate. Thus, the functional and reporting currency of the Company and its subsidiaries is the U.S. dollar. Accordingly, monetary accounts maintained in currencies other than the U.S. dollar are re-measured into U.S. dollars in accordance with Accounting Standards Codification (“ASC”) No. 830 “Foreign Currency Matters”. Changes in currency exchange rates between the Company’s functional currency and the currency in which a transaction is denominated are included in the Company’s statements of operations as financial income, net in the period in which the currency exchange rates change. During the year ended December 31, 2020, the functional currency of the Company’s subsidiary in Germany was the Euro. All amounts on the balance sheet have been translated into U.S. dollars using the exchange rate in effect on the relevant balance sheet date, and all amounts in the statement of operation have been translated into U.S. dollars using the exchange rate on the respective date on which those elements are recognized. The resulting translation adjustment was reported as a component of accumulated other comprehensive income in shareholders’ equity. Management conducted a review of the functional currency of the German subsidiary and decided to change its functional currency from the EURO to the U.S. Dollars, effective January 1, 2021. This change was based on an assessment by Company’s management that the U.S. dollars is the primary currency of the economic environment in which the German subsidiary operates. |
Principles of consolidation | c. Principles of consolidation: The consolidated financial statements include the accounts of the Company and its subsidiaries. Intercompany balances and transactions, including profits from intercompany sales, have been eliminated upon consolidation. |
Cash equivalents | d. Cash equivalents: Cash equivalents are short-term highly liquid investments that are readily convertible to cash with original maturities of three months or less, at acquisition. |
Short-term bank deposits | e. Short-term bank deposits: Short-term bank deposits are deposits with an original maturity of more than three months but less than one year from the date of acquisition. |
Marketable securities | f. Marketable securities: The Company accounts for investments in marketable securities in accordance with ASC 320, “Investments - Debt Securities”. Management determines the appropriate classification of its investments at the time of purchase and re-evaluates such determinations at each balance sheet date. The Company classifies its marketable securities as either short-term or long-term based on each instrument’s underlying contractual maturity date and the entity’s expectations of sales and redemptions in the following year. The Company classifies all of its marketable securities as available-for-sale. Available-for-sale securities are carried at fair value, with the unrealized gains and losses, net of tax, reported in “accumulated other comprehensive income (loss)” in shareholders’ equity. Realized gains and losses on sales of marketable securities are included in financial income, net and are derived using the specific identification method for determining the cost of securities. The amortized cost of marketable securities is adjusted for amortization of premium and accretion of discount to maturity, both of which, together with interest, are included in financial income, net. At each reporting period, the Company evaluates whether declines in fair value below amortized cost are due to expected credit losses, as well as the Company’s ability and intent to hold the investment until a forecasted recovery occurs in accordance with ASC 326, Financial Instrument- Credit losses. Allowance for credit losses on available-for-sale marketable securities are recognized in the Company’s consolidated statements of operations, and any remaining unrealized losses, net of taxes, are included in accumulated other comprehensive income (loss) in shareholders’ equity. The Company did not recognize an allowance for credit losses on marketable securities for the years ended December 31, 2022, 2021 and 2020. |
Inventories | g. Inventories: Inventories are measured at the lower of cost or net realizable value. The cost of inventories comprises cost of purchases and costs incurred in bringing the inventories to their present location and condition. Inventory write-off is measured as the difference between the cost of the inventory and net realizable value and is charged to cost of sales. Cost of inventories is determined as follows: Raw materials and components - on the basis of weighted average cost. Finished goods - on the basis of average costs of materials, and other direct manufacturing costs. During the years ended December 31, 2022, 2021 and 2020, the Company recorded inventory write-offs in a total amount of $11,445, $4,909and $5,000, respectively. |
Property, plant and equipment | h. Property, plant and equipment: Property, plant and equipment are measured at cost, including directly attributable costs, less accumulated depreciation and accumulated impairment losses. Depreciation is calculated on a straight-line basis over the useful life of the assets at annual rates as follows: % Office furniture and equipment 7 - 20 Computer and peripheral equipment 33 Machinery and equipment 7 - 33 Leasehold improvements (*) Building and land (**) (*) Leasehold improvements are amortized on a straight-line basis over the shorter of the lease term (including the extension option held by the Company and intended to be exercised) and the expected life of the improvement. (**) Building and land consist of land and an ink manufacturing plant. In September 2019, the Company purchased the land which includes long-term leasehold rights, with a lease term of 98 years. The manufacturing plant useful life is 25 years. |
Leases | i. Leases: The Company determines if an arrangement is a lease at inception. Contracts containing a lease are further evaluated for classification as an operating or finance lease. In determining the leases classification the Company assesses among other criteria: (i) 75% or more of the remaining economic life of the underlying asset is a major part of the remaining economic life of that underlying asset; and (ii) 90% or more of the fair value of the underlying asset comprises substantially all of the fair value of the underlying asset. Operating leases are included in operating lease right-of-use (“ROU”) assets, current operating lease liabilities and non-current operating lease liabilities in the Company’s consolidated balance sheets. ROU assets represent the right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. For leases with terms greater than 12 months, the Company records the ROU asset and liability at commencement date based on the present value of lease payments according to their term. The Company uses incremental borrowing rates based on the estimated rate of interest for collateralized borrowing over a similar term of the lease payments at commencement date. Lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expenses are recognized on a straight-line basis over the lease term or the useful life of the leased asset. In addition, the carrying amount of the ROU and lease liabilities are remeasured if there is a modification, a change in the lease term, a change in the in-substance fixed lease payments or a change in the assessment to purchase the underlying asset. |
Business combinations | j. Business combinations: The Company accounts for business combinations in accordance with ASC No. 805, “Business Combinations” (“ASC No. 805”). ASC No. 805 requires recognition of assets acquired, liabilities assumed, and any non-controlling interest at the acquisition date, measured at their fair values as of that date. The excess of the fair value of the purchase price over the fair values of the identifiable assets and liabilities is recorded as goodwill. Such valuations require management to make significant estimates and assumptions, especially with respect to intangible assets. Acquisition related costs are expensed in the statement of operations in the period incurred. |
Goodwill | k. Goodwill: Goodwill reflects the excess of the purchase price of a business acquired over the fair value of net assets acquired. Under ASC No. 350, “Intangibles – Goodwill and other” (“ASC No. 350”), goodwill is not amortized but is tested for impairment at least annually or more frequently if events or changes in circumstances indicate that the carrying value may be impaired. The Company has elected to perform an annual impairment test of goodwill as of December 31 of each year, or more frequently if impairment indicators are present. The Company operates in one operating segment and this segment comprises the Company’s sole reporting unit. The goodwill impairment test is performed according to the following principles: 1. An initial qualitative assessment may be performed to determine whether it is more likely than not that the fair value of the reporting unit is less than its carrying amount. 2. If the Company concludes it is more likely than not that the fair value of the reporting unit is less than its carrying amount, a quantitative fair value test is performed. An impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value is recognized. During the years ended December 31, 2022, 2021 and 2020, no impairment of goodwill was recorded. |
Intangible assets | l. Intangible assets: The Company evaluates the recoverability of finite-lived intangible assets for possible impairment whenever events or circumstances indicate that the carrying amount of such assets may not be recoverable. The evaluation is performed at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. If such review indicates that the carrying amount of intangible assets is not recoverable, the carrying amount of such assets is reduced to fair value. The Company has not recorded any impairment charges of finite-lived intangible assets during the years ended December 31, 2022, 2021 and 2020. Acquired identifiable finite-lived intangible assets are amortized on a straight-line basis or accelerated method over the estimated useful lives of the assets. The basis of amortization approximates the pattern in which the assets are utilized, over their estimated useful lives. The Company routinely reviews the remaining estimated useful lives of finite-lived intangible assets. In case the Company reduces the estimated useful life for any asset, the remaining unamortized balance is amortized or depreciated over the revised estimated useful life. |
Impairment of long-lived assets | m. Impairment of long-lived assets: Property, plant and equipment and intangible assets subject to amortization are reviewed for impairment in accordance with ASC No. 360, “Accounting for the Impairment or Disposal of Long-Lived Assets”, whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of the assets to the future undiscounted cash flows expected to be generated by the assets. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. During the years ended December 31, 2022, 2021 and 2020, no impairment of long-lived assets and finite-lived intangible assets was recorded. |
Revenue recognition | n. Revenue recognition: The Company generates revenues from sales of systems, consumables and services, including software subscriptions and transaction-based revenues. The Company sells its products directly to end-users and indirectly through independent distributors, all of whom are considered end-users. The Company recognizes revenues in accordance with ASC No. 606, “Revenue from Contracts with Customers”. As such, the Company recognizes revenue under the core principle that transfer of control to the Company’s customers should be depicted in an amount reflecting the consideration the Company expects to receive in revenue. Therefore, the Company identifies a contract with a customer, identifies the performance obligations in the contract, determines the transaction price, allocates the transaction price to each performance obligation in the contract and recognizes revenues when, or as, the Company satisfies a performance obligation. For multiple performance obligations arrangements, such as selling a system with service contract, installation and training, the Company accounts for each performance obligation separately as it is distinct. The transaction price is allocated to each distinct performance obligation on a relative standalone selling price (“SSP”) basis and revenue is recognized for each performance obligation when control has passed, or service has been rendered. In most cases, the Company can establish SSP based on the observable prices of services sold separately in comparable circumstances to similar customers and for products based on the Company’s best estimates of the price at which the Company would have sold the product regularly on a stand-alone basis. The Company reassesses the SSP on a periodic basis or when facts and circumstances change. The Company does not account for training and installation as a separate performance obligation due to its immateriality in the context of its contracts. Accordingly, revenues from training and installation are recognized upon the delivery of its systems. The Company periodically provides customer incentive programs in the form of product discounts, volume-based rebates and warrants (see also note 11f), which are accounted for as a variable consideration that are deducted from revenue in the period in which the revenue is recognized. These reductions to revenue are made based upon estimates that are determined according to historical experience and the specific terms and conditions of the incentive. The Company maintains a provision for returns which is estimated, primarily based on historical experience as well as management judgment, and is recorded as a reduction of revenue. Such provision amounted to $1,084 and $2,178 as of December 31, 2022 and 2021, respectively, and is included under accrued expenses and other current liabilities in the consolidated balance sheets. Contract liabilities include amounts received from customers for which revenue has not yet been recognized. Contract liabilities amounted to $5,941 and $5,564 as of December 31, 2022 and 2021, respectively, and are presented under deferred revenues and customers advances and other non-current liabilities. During the year ended December 31, 2022, the Company recognized revenues in amount of $5,401, which have been included in the contract liabilities balance on January 1, 2022. In cases where the Company’s customers trade-in old systems as part of a sale of new systems, the fair value of the old systems is recorded as inventory, provided that such value can be recoverable. Revenue disaggregated by revenue source consists of the following: Year ended December 31, 2022 2021 2020 Systems $ 119,073 $ 181,445 $ 87,769 Ink and consumables 103,429 101,192 77,149 Service - spare parts 28,619 21,936 17,521 Service contracts and software subscriptions 20,397 17,433 10,892 Total revenue $ 271,518 $ 322,006 $ 193,331 The following table presents revenue disaggregated by geography based on customer location: Year ended December 31, 2022 2021 2020 U.S. $ 138,515 $ 211,294 $ 124,375 EMEA 93,243 78,686 45,859 Asia Pacific 24,396 23,341 14,211 Other 15,364 8,685 8,886 Total revenue $ 271,518 $ 322,006 $ 193,331 Sales to the Company’s independent distributors accounted for approximately 19%, 13% and 14% of 2022, 2021 and 2020 revenues, respectively. Remaining performance obligations represent contracted revenues that have not yet been recognized, and which includes deferred revenues and non-cancelable contracts that will be invoiced and recognized as revenue in future periods. The Company elected to apply the optional exemption under paragraph ASC 606-10-50-14(a) not to disclose the remaining performance obligations that relate to contracts with an original expected duration of one year or less for which deferred revenues have not been recorded yet. The following table represents the remaining performance obligations as of December 31, 2022, which are expected to be satisfied and recognized in future periods: 2023 2024 2025 and thereafter Service contracts and software subscriptions $ 4,429 $ 379 $ 86 |
Shipping and Handling | o. Shipping and Handling: Shipping and handling fees charged to the Company’s customers are recognized as revenue in the period shipped and the related costs for providing these services are recorded as a cost of revenue. |
Cost of revenues | p. Cost of revenues: Cost of revenues is comprised mainly of cost of systems and parts, ink production, employees’ salaries and related costs, allocated overhead expenses, import taxes, inventory write-offs, royalties and shipping and handling fees. |
Warranty costs | q. Warranty costs: The Company typically provides assurance type standard warranty for six months on its systems including parts and labor. A provision is recorded for estimated warranty costs at the time revenues are recognized based on historical warranty costs and management’s estimates. Factors that affect the Company’s warranty liability include the number of systems, historical rates of warranty claims and cost per claim. The Company periodically assesses the adequacy of its recorded warranty liabilities and adjusts the amounts thereof as necessary. The following are the changes in the liability for product warranty from January 1, 2021 to December 31, 2022: Balance at January 1, 2021 $ 1,650 Additions and adjustments to cost of revenues 8,897 Reduction for payments and costs to satisfy claims (5,935 ) Balance at December 31, 2021 $ 4,612 Additions and adjustments to cost of revenues 2,946 Reduction for payments and costs to satisfy claims (5,640 ) Balance at December 31, 2022 $ 1,918 |
Research and development expenses, net | r. Research and development expenses, net: Research and development expenses, net of government grants, are charged to the statement of operations, as incurred, except for development expenses which are capitalized as described in note 2s. |
Internal use software | s. Internal use software: The Company capitalizes qualifying costs incurred during the application development stage related to software developed for internal use. These costs are capitalized based on the qualifying criteria. Such costs are amortized over the software’s estimated life of three years. Costs incurred to develop software applications consist of (a) certain external direct costs of materials and services incurred in developing or obtaining internal-use computer software, and (b) payroll and payroll-related costs for employees who are directly associated with, and who devote time to, the development or implementation of the software. Capitalized internal-use software costs are included in intangibles assets, net in the consolidated balance sheet. |
Implementation costs incurred in cloud computing arrangement that is a service contract | t. Implementation costs incurred in cloud computing arrangement that is a service contract: The Company’s cloud computing arrangement (“CCA”) that is a service contract consists of an arrangement with third party vendors for internal use of their software applications that they host. The Company defers implementation costs incurred in relation to that arrangement, including costs for software application coding, configuration, integration and customization, while associated process reengineering, training, maintenance and data conversion costs are expensed. The short-term portion of deferred costs are included in prepaid expenses and other current assets in the consolidated balance sheets, while the long-term portion of deferred costs are included in other non-current assets. Amortized implementation costs incurred in CCA that are service contracts will be recognized using the straight-line method over eight years, which represents the noncancellable terms of the CCA, plus any optional renewal periods that the Company is reasonably certain to exercise. Deferred implementation costs are subject to assessment for potential impairment whenever events or changes in circumstances indicate that the carrying values may not be recoverable. Deferred implementation costs incurred in CCA that is a service contract amounted to $4,755 as of December 31, 2022. Amortization of the implementation costs incurred in CCA that is a service contract will commence on January 1, 2023. |
Accounting for share-based compensation | u. Accounting for share-based compensation: The Company accounts for share-based compensation in accordance with ASC No. 718, “Compensation - Stock Compensation” (“ASC No. 718”) that requires companies to estimate the fair value of equity-based payment awards on the date of grant using an option-pricing model. The value of the award is recognized as an expense over the requisite service periods in the Company’s consolidated statement of operations. The Company selected the binomial option pricing model as the most appropriate fair value method for its stock options awards with the following assumptions for the years ended December 31, 2022, 2021 and 2020: Year ended December 31, 2022 2021 2020 Suboptimal exercise multiple 2.8 2.5 1.5 Risk free interest rate 3.02%-4.09% 0.09%-1.36% 0.1%-0.5% Volatility 58.67%-69.13% 42.57%-58.49% 52% Dividend yield 0 0 0% The expected volatility is derived from the volatility of the Company’s share price based upon actual historical stock price movements. The computation of the suboptimal exercise multiple is derived from empirical studies, based on those studies, the early exercise factor of public companies is approximately 150% for managers and 100% for other employees. The interest rate for the period within the contractual life of the award is based on the U.S. Treasury Bills yield curve in effect at the time of grant. The Company currently has no plans to distribute dividends and intends to retain future earnings to finance the development of its business. The fair value of each restricted stock unit (“RSU”) including performance based RSUs is the market value of a single ordinary share of the Company, as determined based on the closing price of the Company’s ordinary shares on the date immediately prior to the day of grant. The Company recognizes compensation expenses for the value of its awards, which have graded vesting based on service conditions, using the straight-line method, over the requisite service period of each of the awards. The Company recognizes forfeitures of awards as they occur. |
Derivatives and hedging | v. Derivatives and hedging: The Company follows FASB ASC No. 815, “Derivatives and Hedging” which requires companies to recognize all of their derivative instruments as either assets or liabilities in the balance sheets at fair value. Accounting for changes in fair value (i.e., gains or losses) of a derivative instrument depends on whether it has been designated and qualifies as part of a hedging transaction and further, on the type of hedging transaction. For those derivative instruments that are designated and qualify as hedging instruments, a company must designate the hedging instrument, based upon the exposure being hedged, as a fair value hedge, cash flow hedge, or a hedge of a net investment in a foreign operation. Due to the Company’s global operations, it is exposed to foreign currency exchange rate fluctuations in the normal course of its business. The Company uses derivative financial instruments, specifically foreign currency forward and option contracts, to manage exposure to foreign currency risks, by hedging a portion of the Company’s forecasted payroll and related expenses denominated in New Israeli Shekels that it expects to incur within a year. The effect of exchange rate changes on foreign currency hedging contracts is expected to partially offset the effect of exchange rate changes on the underlying hedged item. For derivative instruments that are designated and qualify as a cash flow hedge (i.e., hedging the exposure to variability in expected future cash flows that is attributable to a particular risk), the gain or loss on the derivative instrument is reported as a component of other comprehensive income (loss) and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. Gains or losses from contracts that were not designated as hedging instruments are recognized in “financial income, net”. The Company measured the fair value of these contracts in accordance with ASC No. 820, “Fair Value Measurements and Disclosures” (“ASC No. 820”), and they were classified as level 2 of the fair value hierarchy. 1. Derivative instruments notional amounts: The following table summarizes the notional amounts for hedged items: December 31, 2022 2021 Designated cash flow hedges $ 38,465 $ 12,303 Non-designated hedges 491 - $ 38,956 $ 12,303 2. Derivative instrument outstanding: As of December 31, 2022 and 2021, the fair value of the Company’s outstanding forward and option contracts amounted to $1,000 and $317 which are included within “accrued expenses and other current liabilities” and “Prepaid expenses and other current assets”, respectively, on the balance sheets. 3. Derivative instrument gains and losses The following table sets forth the expense (income) from derivatives instruments included in the consolidated statements of operations: Year ended December 31, 2022 2021 2020 Cost of revenues $ 674 $ (33 ) $ (94 ) Research and development 1,029 (48 ) (48 ) Sales and marketing 365 (21 ) (21 ) General and administrative 481 (31 ) (31 ) The Company’s outstanding derivatives designated as cash flow hedging instruments and their related gains and losses, are reported in the statement of cash flows as cash flows from operating activities. The maximum length of time over which the Company hedges its exposure to the variability in future cash flows for forecasted transactions is less than 12 months. |
Advertising | w. Advertising: Advertising costs are charged to operations as incurred and were $3,026, $2,691 and $2,273 for the years ended December 31, 2022, 2021 and 2020, respectively. |
Income taxes | x. Income taxes: The Company accounts for income taxes and uncertain tax positions in accordance with ASC No. 740, “Income Taxes” (“ASC No. 740”). ASC No. 740 prescribes the use of the liability method, whereby deferred tax asset and liability account balances are determined based on temporary differences between financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. The Company provides a valuation allowance, if necessary, to reduce deferred tax assets to amounts more likely than not to be realized. Deferred tax assets and liabilities are classified as non-current assets and liabilities, respectively. ASC No. 740 contains a two-step approach to recognizing and measuring a liability for uncertain tax positions. The first step is to evaluate the tax position taken or expected to be taken in a tax return by determining if the weight of available evidence indicates that it is more likely than not that, on an evaluation of the technical merits, the tax position will be sustained on audit, including resolution of any related appeals or litigation processes. The second step is to measure the tax benefit as the largest amount that is more than 50% likely to be realized upon ultimate settlement. The Company accrues interest and penalties related to unrecognized tax benefits on its taxes on income. |
Concentrations of credit risks | y. Concentrations of credit risks: Financial instruments that potentially subject the Company and its subsidiaries to concentrations of credit risk consist principally of cash and cash equivalents, bank deposits, marketable securities, foreign exchange contracts and trade receivables. The majority of the Company’s and its subsidiaries’ cash and cash equivalents, bank deposits and marketable securities are invested in major banks in Israel and the U.S. Generally, these cash equivalents may be redeemed upon demand and, therefore management believes that they bear a lower risk. The Company attempts to limit its exposure to interest rate risk by investing in securities with maturities of less than four years; however, the Company may be unable to successfully limit its risk to interest rate fluctuations. At any time, a sharp rise in interest rates could have a material adverse impact on the fair value of its investment portfolio. Conversely, declines in interest rates could have a material favorable impact on the fair value of its investment portfolio. Increases or decreases in interest rates could have a material impact on interest earnings related to new investments during the period. The trade receivables of the Company and its subsidiaries are mainly derived from sales to customers located in the United States, Europe and Asia Pacific. The Company performs ongoing credit evaluations of its customers. In certain circumstances, the Company may require letters of credit from its customers, other collaterals or additional guarantees. The allowance for credit loss is based on the Company’s assessment of historical collection experience, customer creditworthiness, and current and future economic and market conditions. The Company regularly reviews the adequacy of the allowance for credit loss based on a combination of factors, including an assessment of the current customer’s aging balance, the nature and size of the customer and the financial status of the customer. Accounts receivable deemed uncollectable are charged against the allowance for credit loss when identified. The allowance for credit loss as of December 31, 2022 and 2021, amounted to $738 and $286, respectively. |
Transfers of financial assets | z. Transfers of financial assets: ASC 860 “Transfers and Servicing”, (“ASC 860”), establishes a standard for determining when a transfer of financial assets should be accounted for as a sale. The Company’s arrangements are such that the underlying conditions are met for the transfer of financial assets to qualify for accounting as a sale. The transfers of financial assets are typically performed by the factoring of receivables to two financial institutions. For the year ended December 31, 2022, and 2021, the Company sold trade receivables to financial institutions in a total net amount of $616 and $1,387, respectively. Control and risk of those trade receivables were fully transferred in accordance with ASC 860. During the year ended December 31, 2022, and 2021, the Company recorded an aggregate amount of $41 and $66, respectively, as financial expenses related to its factoring arrangements. |
Severance pay | aa. Severance pay: The Company’s employees in Israel have subscribed to Section 14 of Israel’s Severance Pay Law, 5723-1963 (“Section 14”). Pursuant to Section 14, the Company’s employees, covered by this section, are entitled only to monthly deposits, at a rate of 8.33% of their monthly salary, made on their behalf by the Company. Payments in accordance with Section 14 release the Company from any future severance liabilities in respect of those employees. Neither severance pay liability nor severance pay fund under Section 14 for such employees is recorded on the Company’s balance sheet. With regards to employees in Israel that are not subject to Section 14, the Company’s liability for severance pay is calculated pursuant to the Severance Pay Law, based on the most recent salary of the relevant employees multiplied by the number of years of employment as of the balance sheet date. These employees are entitled to one-month salary for each year of employment or a portion thereof. The Company’s liability for these employees is fully provided for via monthly deposits with severance pay funds, insurance policies and an accrual. The value of these deposits is recorded as an asset on the Company’s balance sheet. The deposited funds include profits accumulated up to the balance sheet date. The deposited funds may be withdrawn only upon the fulfillment of the obligation pursuant to the Severance Pay Law or labor agreements. Severance expenses for the years ended December 31, 2022, 2021 and 2020 were $3,554, $2,895and $2,250, respectively. |
Fair value of financial instruments | ab. Fair value of financial instruments: The Company applies ASC No. 820. Under this standard, fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., the “exit price”) in an orderly transaction between market participants at the measurement date. In determining fair value, the Company uses various valuation approaches. ASC No. 820 establishes a hierarchy for inputs used in measuring fair value that maximize the use of observable inputs and minimize the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The hierarchy is broken down into three levels based on the inputs as follows: Level 1 - Valuations based on quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company can access at the measurement date. Level 2 - Valuations based on one or more quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly. Level 3 - Valuations based on inputs that are unobservable and significant to the overall fair value measurement. The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The carrying amount of cash, cash equivalents, short term bank deposits, trade receivables, prepaid expenses and other current assets, trade payables and accrued expenses and other current liabilities approximates their fair value due to the short-term maturities of such instruments. The Company measures its marketable securities and foreign currency derivative instruments at fair value. Marketable securities and foreign currency derivative instruments are classified within Level 2 as the valuation inputs are based on quoted prices and market observable data of similar instruments. |
Basic and diluted earnings (losses) per share | ac. Basic and diluted earnings (losses) per share: Basic earnings No. 260, “Earnings Per Share” is computed based on the weighted average number of ordinary shares outstanding during each period. Diluted earnings per share is computed based on the weighted average number of ordinary shares outstanding during each period, plus dilutive potential ordinary shares considered outstanding during the period, in accordance with the relevant ASC. For the years ended December 31, 2022 and 2020, all outstanding options and RSU’s have been excluded from the calculation of the diluted earnings per share since their effect was anti-dilutive. The total number of shares related to the outstanding options and RSU’s excluded from the calculation of diluted earnings (losses) per share due to their anti-dilutive effect was 5,005 for the year ended December 31, 2021. |
Restructuring | ad. Restructuring: During the year ended December 31, 2022, the Company initiated several measures to pursue greater cost efficiency and to realign its business and strategic priorities. During 2022, the Company announced a workforce reduction of approximately 10%. As a result, the Company recorded severance and other personnel related expenses for the impacted employees, in addition to other related expenses. The Company substantially completed these actions by the end of 2022. A summary of the restructuring charges for the year ended December 31, 2022 by major activity type is as follows: Severance and other personnel costs Others Total Cost of product revenues $ 347 $ 342 $ 689 Cost of service revenues 12 - 12 Research and development, net 201 - 201 Sales and marketing 675 - 675 General and administrative 74 42 116 $ 1,309 $ 384 $ 1,693 The liabilities related to the restructuring plan as of December 31, 2022 amounted to $708. |
New accounting pronouncement, not yet adopted | ae. New accounting pronouncement, not yet adopted The Company has reviewed recent accounting pronouncements and concluded that they are either not applicable to its business or that no material effect is expected on the consolidated financial statements as a result of their future adoption. |
Significant Accounting Polici_2
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Significant Accounting Policies [Abstract] | |
Schedule of property and equipment on straight-line basis over useful life of assets | % Office furniture and equipment 7 - 20 Computer and peripheral equipment 33 Machinery and equipment 7 - 33 Leasehold improvements (*) Building and land (**) (*) Leasehold improvements are amortized on a straight-line basis over the shorter of the lease term (including the extension option held by the Company and intended to be exercised) and the expected life of the improvement. (**) Building and land consist of land and an ink manufacturing plant. In September 2019, the Company purchased the land which includes long-term leasehold rights, with a lease term of 98 years. The manufacturing plant useful life is 25 years. |
Schedule of revenue disaggregated by revenue | Year ended December 31, 2022 2021 2020 Systems $ 119,073 $ 181,445 $ 87,769 Ink and consumables 103,429 101,192 77,149 Service - spare parts 28,619 21,936 17,521 Service contracts and software subscriptions 20,397 17,433 10,892 Total revenue $ 271,518 $ 322,006 $ 193,331 |
Schedule of revenue disaggregated by geography based on customer location | Year ended December 31, 2022 2021 2020 U.S. $ 138,515 $ 211,294 $ 124,375 EMEA 93,243 78,686 45,859 Asia Pacific 24,396 23,341 14,211 Other 15,364 8,685 8,886 Total revenue $ 271,518 $ 322,006 $ 193,331 |
Schedule of outstanding performance obligations of deferred revenues | 2023 2024 2025 and thereafter Service contracts and software subscriptions $ 4,429 $ 379 $ 86 |
Schedule of changes in liability for product warranty | Balance at January 1, 2021 $ 1,650 Additions and adjustments to cost of revenues 8,897 Reduction for payments and costs to satisfy claims (5,935 ) Balance at December 31, 2021 $ 4,612 Additions and adjustments to cost of revenues 2,946 Reduction for payments and costs to satisfy claims (5,640 ) Balance at December 31, 2022 $ 1,918 |
Schedule of fair value method for stock options awards | Year ended December 31, 2022 2021 2020 Suboptimal exercise multiple 2.8 2.5 1.5 Risk free interest rate 3.02%-4.09% 0.09%-1.36% 0.1%-0.5% Volatility 58.67%-69.13% 42.57%-58.49% 52% Dividend yield 0 0 0% |
Schedule of notional amounts of outstanding derivative positions | December 31, 2022 2021 Designated cash flow hedges $ 38,465 $ 12,303 Non-designated hedges 491 - $ 38,956 $ 12,303 |
Schedule of expense (income) from derivatives instruments | Year ended December 31, 2022 2021 2020 Cost of revenues $ 674 $ (33 ) $ (94 ) Research and development 1,029 (48 ) (48 ) Sales and marketing 365 (21 ) (21 ) General and administrative 481 (31 ) (31 ) |
Schedule of restructuring charges | Severance and other personnel costs Others Total Cost of product revenues $ 347 $ 342 $ 689 Cost of service revenues 12 - 12 Research and development, net 201 - 201 Sales and marketing 675 - 675 General and administrative 74 42 116 $ 1,309 $ 384 $ 1,693 |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Business Combinations [Abstract] | |
Schedule of purchase price allocation | Fair value Tangible assets (liabilities): Cash $ 1,349 Account receivables and other receivables 761 Property and equipment 53 Trade payables and other payables (1,054 ) Deferred tax liabilities, net (952 ) Intangible assets: Technology 5,116 Non-competition 709 Goodwill 10,902 Total purchase price $ 16,884 Fair value Tangible assets, net $ 1,448 Intangible assets: Technology - materials 1,795 Technology - systems 1,767 License 1,000 Goodwill 8,981 Total purchase price $ 14,991 Fair value Amortization period (years) Tangible assets (liabilities): Cash $ 789 Accounts receivable and other receivables 1,672 Inventory 3,991 Property and equipment 6,194 Other assets 343 Advance from customers (1,726 ) Trade payables (466 ) Provisions and other liabilities (717 ) Deferred tax liabilities, net (855 ) Net assets 9,225 Intangible assets: Customer Relationship 1,213 5.8 Technology 856 2.4 Backlog 432 0.5 Goodwill 3,717 Infinite Total purchase price $ 15,443 |
Marketable Securities (Tables)
Marketable Securities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Marketable Securities [Abstract] | |
Schedule of marketable securities | December 31, 2022 Amortized cost Gross unrealized gain Gross unrealized loss Fair value Matures within one year: Corporate debentures $ 13,394 $ - $ (176 ) $ 13,218 Government debentures 7,356 - (194 ) 7,162 20,750 - (370 ) 20,380 Matures after one through four years: Corporate debentures 254,909 12 (16,573 ) 238,348 Government debentures 8,115 - (493 ) 7,622 263,024 12 (17,066 ) 245,970 Total $ 283,774 $ 12 $ (17,436 ) $ 266,350 December 31, 2021 Amortized Cost Gross unrealized gain Gross unrealized loss Fair value Matures within one year: Corporate debentures $ 25,430 $ 170 $ - $ 25,600 Government debentures 2,507 9 - 2,516 27,937 179 - 28,116 Matures after one through four years: Corporate debentures 140,364 435 (1,090 ) 139,709 Government debentures 9,648 11 (99 ) 9,560 150,012 446 (1,189 ) 149,269 Total $ 177,949 $ 625 $ (1,189 ) $ 177,385 |
Schedule of investments with continuous unrealized losses | December 31, 2022 Less than 12 months More than 12 months Total Fair Value Unrealized Losses Fair value Unrealized losses Fair value Unrealized losses Corporate debentures $ 143,402 $ (7,666 ) $ 103,890 $ (9,083 ) $ 247,292 $ (16,749 ) Government debentures 6,735 (317 ) 8,048 (370 ) 14,783 (687 ) Total $ 150,137 $ (7,983 ) $ 111,938 $ (9,453 ) $ 262,075 $ (17,436 ) December 31, 2021 Less than 12 months More than 12 months Total Fair value Unrealized Losses Fair value Unrealized losses Fair value Unrealized losses Corporate debentures $ 114,199 $ (1,075 ) $ 1,063 $ (15 ) $ 115,262 $ (1,090 ) Government debentures 6,524 (91 ) 2,523 (8 ) 9,047 (99 ) Total $ 120,723 $ (1,166 ) $ 3,586 $ (23 ) $ 124,309 $ (1,189 ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of assets and liabilities that were measured at fair value | December 31, 2022 Level 1 Level 2 Level 3 Total Assets: Cash and cash equivalents $ 104,597 - - $ 104,597 Short-term bank deposits 275,033 - - 275,033 Marketable securities - $ 266,350 - 266,350 Total financial assets $ 379,630 $ 266,350 $ - $ 645,980 Liabilities: Foreign currency derivative contracts - $ (1,000 ) - $ (1,000 ) December 31, 2021 Level 1 Level 2 Level 3 Total Assets: Cash and cash equivalents $ 611,551 $ - $ - $ 611,551 Short-term bank deposits 9,168 - - 9,168 Marketable securities - 177,385 - 177,385 Foreign currency derivative contracts - 317 - 317 Total financial assets $ 620,719 $ 177,702 $ - $ 798,421 |
Inventories, Net (Tables)
Inventories, Net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories | December 31, 2022 2021 Raw materials and components $ 47,737 $ 29,857 Finished goods (*) 41,678 33,160 $ 89,415 $ 63,017 (*) Includes amounts of $405 and $654 as of December 31, 2022 and 2021, respectively, with respect to inventory delivered to customers for which revenue was not yet recognized. |
Property, Plant and Equipment_2
Property, Plant and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property, plant and equipment | December 31, 2022 2021 Cost: Computer and peripheral equipment $ 10,629 $ 8,092 Office furniture and equipment 4,988 3,268 Machinery and equipment 37,702 28,474 Leasehold improvements 21,373 16,061 Building and land 19,947 12,744 94,639 68,639 Accumulated depreciation (34,176 ) (23,593 ) Property, plant and equipment, net $ 60,463 $ 45,046 |
Intangible Assets, Net (Tables)
Intangible Assets, Net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of intangible assets | December 31, 2022 2021 Original amount: Acquired technology $ 10,534 $ 10,244 License 1,000 1,000 Customer relationships 4,717 3,504 Non-competition agreement 974 974 Software development costs 1,320 1,320 Distribution rights 688 380 $ 19,233 $ 17,422 Accumulated amortization: Acquired technology 3,276 2,355 License 165 46 Customer relationships 3,534 3,268 Non-competition agreement 833 596 Software development costs 1,285 844 Distribution rights 250 250 9,343 7,359 Intangible assets, net $ 9,890 $ 10,063 |
Schedule of future amortization expenses | Years ending December 31, Amount 2023 $ 2,249 2024 1,923 2025 1,539 2026 1,538 2027 1,537 2028 and thereafter 1,104 $ 9,890 |
Accrued Expenses and Other Pa_2
Accrued Expenses and Other Payables (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accrued Expenses and Other Payables [Abstract] | |
Schedule of accrued expenses and other payables | December 31, 2022 2021 Accrued expenses $ 16,103 $ 6,838 Government authorities 4,984 3,221 Warranty provision 1,531 3,640 Provision for returns 1,084 2,178 Professional services 1,890 1,410 $ 25,592 $ 17,287 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Stockholders' Equity Note [Abstract] | |
Schedule of share option activity and related information | Number of shares upon exercise Weighted average exercise price Weighted- average remaining contractual term (in years) Aggregate intrinsic value Outstanding at beginning of year 413,175 $ 19.58 5.79 $ 54,815 Granted 356,933 95.04 - - Exercised (38,559 ) 17.86 - 1,086 Forfeited (63,227 ) 99.63 - - Outstanding at end of year 668,322 $ 52.66 6.68 $ 2,310 Exercisable at end of year 339,777 $ 17.66 4.42 $ 2,288 |
Schedule of RSU’s activity | Number Unvested at beginning of year 684,666 Granted 827,504 Vested (295,108 ) Forfeited (166,723 ) Unvested at the end of the year 1,050,339 |
Schedule of share based compensation expense | Year ended December 31, 2022 2021 2020 Cost of products $ 2,185 $ 1,355 $ 1,056 Cost of services 1,676 1,105 771 Research and development, net 5,312 2,685 1,712 Sales and marketing 7,361 5,004 2,893 General and administrative 6,115 4,984 3,604 Total share-based compensation expenses $ 22,649 $ 15,133 $ 10,036 |
Earnings (Losses) Per Share (Ta
Earnings (Losses) Per Share (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of basic and diluted earnings (losses) per share | Year ended December 31, 2022 2021 2020 Numerator for basic and diluted earnings (losses) per share: Net income (loss) $ (79,065 ) $ 15,527 $ (4,783 ) Weighted average ordinary shares outstanding: Denominator for basic earnings (losses) per share 49,791,659 47,079,358 42,286,275 Effect of dilutive securities: Employee share options, RSUs, PSUs and Warrants - 1,520,737 - Denominator for diluted earnings (losses) per share 49,791,659 48,600,095 42,286,275 Basic earnings (losses) per share $ (1.59 ) $ 0.33 $ (0.11 ) Diluted earnings (losses) per share $ (1.59 ) $ 0.32 $ (0.11 ) |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Stockholders' Equity Note [Abstract] | |
Schedule of accumulated balances other comprehensive income (Loss) | Unrealized Gains Unrealized Gains Foreign Total Beginning balance $ (522 ) $ 293 $ 800 $ 571 Other comprehensive income before reclassifications (16,912 ) (3,450 ) - (20,362 ) Amounts reclassified from accumulated other comprehensive income 10 2,357 - 2,367 Net current period other comprehensive income (16,902 ) (1,093 ) - (17,995 ) Ending Balance $ (17,424 ) $ (800 ) $ 800 $ (17,424 ) |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Schedule of lease expense | Year ended December 31, 2022 2021 2020 Operating lease $ 6,126 $ 5,085 $ 4,544 Short-term lease 297 264 34 Total lease expense $ 6,423 $ 5,349 $ 4,578 |
Schedule of maturities of operating lease liabilities | 2023 $ 5,563 2024 4,884 2025 3,999 2026 2,982 2027 2,878 Thereafter 8,094 Total operating lease payments $ 28,400 Less - imputed interest (2,376 ) Present value of future lease payments $ 26,024 |
Taxes on Income (Tables)
Taxes on Income (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of deferred tax liabilities and assets | December 31, 2022 2021 Deferred tax assets: Carryforward tax losses $ 9,494 $ 4,426 Share-based compensation expenses 1,853 934 Research and development carryforward expenses 3,605 2,666 Allowance and other reserves 6,672 2,685 Operating lease liabilities 2,622 2,820 Total gross deferred tax assets 24,246 13,531 Less, Valuation Allowance (19,735 ) - Total deferred tax assets 4,511 13,531 Deferred tax liabilities: Operating lease ROU assets (2,690 ) (2,670 ) Intangible assets (1,539 ) (1,007 ) Others (826 ) (515 ) Total gross deferred tax liabilities (5,055 ) (4,192 ) Net deferred tax assets (liabilities) $ (544 ) $ 9,339 |
Schedule of income (loss) before income taxex | Year ended December 31, 2022 2021 2020 Domestic $ (58,085 ) $ 10,334 $ (6,926 ) Foreign 1,585 5,058 3,695 Income (loss) before income taxes $ (56,500 ) $ 15,392 $ (3,231 ) |
Schedule of taxes on income (tax benefits) | Year ended December 31, 2022 2021 2020 Current taxes $ 12,619 $ (550 ) $ 210 Deferred taxes 9,946 415 1,342 $ 22,565 $ (135 ) $ 1,552 Domestic $ 20,400 $ 322 $ 1,360 Foreign 2,165 (457 ) 192 $ 22,565 $ (135 ) $ 1,552 |
Schedule of taxes on income (tax benefits), domestic and foreign | Year ended December 31, 2022 2021 2020 Domestic taxes: Current taxes $ 11,119 $ (1,171 ) $ 16 Deferred taxes 9,281 1,493 1,344 20,400 322 1,360 Foreign taxes: Current taxes 1,500 621 194 Deferred taxes 665 (1,078 ) (2 ) 2,165 (457 ) 192 Taxes on income $ 22,565 $ (135 ) $ 1,552 |
Schedule of unrecognized tax benefits | December 31, 2022 2021 Beginning of year $ 1,034 $ 4,357 Additions related to tax positions taken during current year 312 613 Reduction related to settlements of tax matters - (1,286 ) Reductions for tax positions of prior years (952 ) (2,650 ) Balance at December 31(*) $ 394 $ 1,034 (*) As of December 31, 2022, and 2021 unrecognized tax benefits in an amount of $131 and $788, respectively, were presented as a reduction from deferred taxes. |
Schedule of effective income tax rate reconciliation | Year ended December 31, 2022 2021 2020 Income (loss) before taxes, as reported in the consolidated statements of operations $ (56,500 ) $ 15,392 $ (3,231 ) Theoretical tax expense (benefit) at the Israeli statutory tax rate (12,995 ) 3,540 (741 ) Beneficiary enterprise expenses (benefit) 9,003 (560 ) (68 ) Tax adjustment in respect of different tax rate of foreign subsidiaries 639 309 (94 ) Non-deductible expenses and other permanent differences (289 ) (1,808 ) (278 ) Share based compensation 541 355 1,485 Increase (decrease) in other uncertain tax positions, net (639 ) (2,037 ) 1,318 Taxes related to prior years (see also note 15b) 11,471 - - Losses and timing differences for which valuation allowance was provided 15,727 - - Others (893 ) 66 (70 ) Actual tax expense (benefit) $ 22,565 $ (135 ) $ 1,552 |
Geographic Information (Tables)
Geographic Information (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Schedule of long-lived assets by geographic region | December 31, 2022 2021 U.S. $ 6,202 $ 6,433 Israel 70,722 61,339 EMEA 9,720 1,787 Asia Pacific 958 642 $ 87,602 $ 70,201 |
Schedule of major customers’ data as a percentage | Year ended December 31, 2022 2021 2020 Customer A 27 % 27 % 11 % Customer B 2 % 12 % 11 % |
Financial Income, Net (Tables)
Financial Income, Net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Condensed Financial Income [Abstract] | |
Schedule of financial income, net | Year ended December 31, 2022 2021 2020 Financial income: Interest on bank deposits and other $ 6,586 $ 2,129 $ 2,238 Exchange rate differences, net 2,426 - - Realized gain on sale of marketable securities, net - 32 503 Interest on marketable securities 6,465 3,243 2,870 15,477 5,404 5,611 Financial expenses: Bank charges (265 ) (286 ) (357 ) Exchange rate differences, net - (1,240 ) (1,361 ) Realized loss on sale of marketable securities, net (10 ) - - Amortization of premium and accretion of discount on marketable securities, net (1,820 ) (1,279 ) (395 ) (2,095 ) (2,805 ) (2,113 ) Total financial income, net: $ 13,382 $ 2,599 $ 3,498 |
General (Details)
General (Details) | Apr. 05, 2022 |
Tesoma GmbH [Member] | |
General (Details) [Line Items] | |
Percent of ownership acquired | 100% |
Significant Accounting Polici_3
Significant Accounting Policies (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) shares | Dec. 31, 2020 USD ($) | |
Significant Accounting Policies [Abstract] | |||
Description of debt maturity date | original maturity of more than three months but less than one year from the date of acquisition. | ||
Inventory write off | $ 11,445 | $ 4 | $ 5,000 |
Lease term | 98 years | ||
Manufacturing plant useful life | 25 years | ||
Classification of leases description | (i) 75% or more of the remaining economic life of the underlying asset is a major part of the remaining economic life of that underlying asset; and (ii) 90% or more of the fair value of the underlying asset comprises substantially all of the fair value of the underlying asset. | ||
Operating segment | 1 | ||
Provisions for estimated sales returns | $ 1,084 | 2,178 | |
Contract liabilities | 5,941 | $ 5,564 | |
Recognized revenues | $ 5,401 | ||
Sales to distributors percentage | 19% | 13% | 14% |
Estimated life | three | ||
contract amount | $ 4,755 | ||
Percentage of exercise factor | 150% | ||
Percentage of share-based compensation to other employees | 100% | ||
Fair value of outstanding forward and option | $ 1,000 | $ 317 | |
Advertising costs | $ 3,026 | 2,691 | $ 2,273 |
Tax benefit settlement percentage | 50% | ||
Allowance for credit loss | $ 738 | 286 | |
Financial institutions total net amount | 616 | 1,387 | |
Aggregate amount | $ 41 | 66 | |
Monthly deposits rate | 8.33% | ||
Severance expenses | $ 3,554 | $ 2 | $ 2,250 |
Anti-dilutive effect (in Shares) | shares | 5,005 | ||
Reduction percentage | 10% | ||
Restructuring plan | $ 708 |
Significant Accounting Polici_4
Significant Accounting Policies (Details) - Schedule of property and equipment on straight-line basis over useful life of assets | Dec. 31, 2022 | |
Office furniture and equipment [Member] | Minimum [Member] | ||
Significant Accounting Policies (Details) - Schedule of property and equipment on straight-line basis over useful life of assets [Line Items] | ||
Property and equipment useful life of assets at annual rates | 7% | |
Office furniture and equipment [Member] | Maximum [Member] | ||
Significant Accounting Policies (Details) - Schedule of property and equipment on straight-line basis over useful life of assets [Line Items] | ||
Property and equipment useful life of assets at annual rates | 20% | |
Computer and peripheral equipment [Member] | ||
Significant Accounting Policies (Details) - Schedule of property and equipment on straight-line basis over useful life of assets [Line Items] | ||
Property and equipment useful life of assets at annual rates | 33% | |
Machinery and equipment [Member] | Minimum [Member] | ||
Significant Accounting Policies (Details) - Schedule of property and equipment on straight-line basis over useful life of assets [Line Items] | ||
Property and equipment useful life of assets at annual rates | 7% | |
Machinery and equipment [Member] | Maximum [Member] | ||
Significant Accounting Policies (Details) - Schedule of property and equipment on straight-line basis over useful life of assets [Line Items] | ||
Property and equipment useful life of assets at annual rates | 33% | |
Leasehold Improvements [Member] | ||
Significant Accounting Policies (Details) - Schedule of property and equipment on straight-line basis over useful life of assets [Line Items] | ||
Property and equipment useful life of assets at annual rates | [1] | |
Building and land [Member] | ||
Significant Accounting Policies (Details) - Schedule of property and equipment on straight-line basis over useful life of assets [Line Items] | ||
Property and equipment useful life of assets at annual rates | [2] | |
[1]Leasehold improvements are amortized on a straight-line basis over the shorter of the lease term (including the extension option held by the Company and intended to be exercised) and the expected life of the improvement.[2]Building and land consist of land and an ink manufacturing plant. In September 2019, the Company purchased the land which includes long-term leasehold rights, with a lease term of 98 years. The manufacturing plant useful life is 25 years. |
Significant Accounting Polici_5
Significant Accounting Policies (Details) - Schedule of revenue disaggregated by revenue - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule of revenue disaggregated by revenue source consists [Abstract] | |||
Systems | $ 119,073 | $ 181,445 | $ 87,769 |
Ink and consumables | 103,429 | 101,192 | 77,149 |
Service - spare parts | 28,619 | 21,936 | 17,521 |
Service contracts and software subscriptions | 20,397 | 17,433 | 10,892 |
Total revenue | $ 271,518 | $ 322,006 | $ 193,331 |
Significant Accounting Polici_6
Significant Accounting Policies (Details) - Schedule of revenue disaggregated by geography based on customer location - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Significant Accounting Policies (Details) - Schedule of revenue disaggregated by geography based on customer location [Line Items] | |||
Total revenue | $ 271,518 | $ 322,006 | $ 193,331 |
U.S. [Member] | |||
Significant Accounting Policies (Details) - Schedule of revenue disaggregated by geography based on customer location [Line Items] | |||
Total revenue | 138,515 | 211,294 | 124,375 |
EMEA [Member] | |||
Significant Accounting Policies (Details) - Schedule of revenue disaggregated by geography based on customer location [Line Items] | |||
Total revenue | 93,243 | 78,686 | 45,859 |
Asia Pacific [Member] | |||
Significant Accounting Policies (Details) - Schedule of revenue disaggregated by geography based on customer location [Line Items] | |||
Total revenue | 24,396 | 23,341 | 14,211 |
Other [Member] | |||
Significant Accounting Policies (Details) - Schedule of revenue disaggregated by geography based on customer location [Line Items] | |||
Total revenue | $ 15,364 | $ 8,685 | $ 8,886 |
Significant Accounting Polici_7
Significant Accounting Policies (Details) - Schedule of outstanding performance obligations of deferred revenues $ in Thousands | Dec. 31, 2022 USD ($) |
2023 [Member] | |
Significant Accounting Policies (Details) - Schedule of outstanding performance obligations of deferred revenues [Line Items] | |
Service contracts and software subscriptions | $ 4,429 |
2024 [Member] | |
Significant Accounting Policies (Details) - Schedule of outstanding performance obligations of deferred revenues [Line Items] | |
Service contracts and software subscriptions | 379 |
2025 and thereafter [Member] | |
Significant Accounting Policies (Details) - Schedule of outstanding performance obligations of deferred revenues [Line Items] | |
Service contracts and software subscriptions | $ 86 |
Significant Accounting Polici_8
Significant Accounting Policies (Details) - Schedule of changes in liability for product warranty - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule of changes in liability for product warranty [Abstract] | ||
Balance at beginning | $ 4,612 | $ 1,650 |
Additions and adjustments to cost of revenues | 2,946 | 8,897 |
Reduction for payments and costs to satisfy claims | (5,640) | (5,935) |
Balance at ending | $ 1,918 | $ 4,612 |
Significant Accounting Polici_9
Significant Accounting Policies (Details) - Schedule of fair value method for stock options awards - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Suboptimal exercise multiple (in Dollars per share) | $ 2.8 | $ 2.5 | $ 1.5 |
Volatility | 52% | ||
Dividend yield | 0% | 0% | 0% |
Minimum [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Risk free interest rate | 3.02% | 0.09% | 0.10% |
Volatility | 58.67% | 42.57% | |
Maximum [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Risk free interest rate | 4.09% | 1.36% | 0.50% |
Volatility | 69.13% | 58.49% |
Significant Accounting Polic_10
Significant Accounting Policies (Details) - Schedule of notional amounts of outstanding derivative positions - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule of notional amounts of outstanding derivative positions [Abstract] | ||
Designated cash flow hedges | $ 38,465 | $ 12,303 |
Non-designated hedges | 491 | |
Total | $ 38,956 | $ 12,303 |
Significant Accounting Polic_11
Significant Accounting Policies (Details) - Schedule of expense (income) from derivatives instruments - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule of expense (income) from derivatives instruments [Abstract] | |||
Cost of revenues | $ 674 | $ (33) | $ (94) |
Research and development | 1,029 | (48) | (48) |
Sales and marketing | 365 | (21) | (21) |
General and administrative | $ 481 | $ (31) | $ (31) |
Significant Accounting Polic_12
Significant Accounting Policies (Details) - Schedule of restructuring charges $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Significant Accounting Policies (Details) - Schedule of restructuring charges [Line Items] | |
Cost of product revenues | $ 689 |
Cost of service revenues | 12 |
Research and development, net | 201 |
Sales and marketing | 675 |
General and administrative | 116 |
Total | 1,693 |
Severance and other personnel costs [Member] | |
Significant Accounting Policies (Details) - Schedule of restructuring charges [Line Items] | |
Cost of product revenues | 347 |
Cost of service revenues | 12 |
Research and development, net | 201 |
Sales and marketing | 675 |
General and administrative | 74 |
Total | 1,309 |
Others [Member] | |
Significant Accounting Policies (Details) - Schedule of restructuring charges [Line Items] | |
Cost of product revenues | 342 |
Cost of service revenues | |
Research and development, net | |
Sales and marketing | |
General and administrative | 42 |
Total | $ 384 |
Acquisitions (Details)
Acquisitions (Details) - USD ($) $ in Thousands | Apr. 05, 2022 | Aug. 10, 2021 | Aug. 07, 2020 |
Custom Gateway [Member] | |||
Acquisitions (Details) [Line Items] | |||
Total consideration | $ 16,884 | ||
Acquisition related costs | $ 648 | ||
Voxel8 Inc. [Member] | |||
Acquisitions (Details) [Line Items] | |||
Total consideration | $ 14,991 | ||
Acquisition related costs | $ 212 | ||
Tesoma GMBH [Member] | |||
Acquisitions (Details) [Line Items] | |||
Total consideration | $ 15,443 | ||
Acquisition related costs | $ 512 |
Acquisitions (Details) - Schedu
Acquisitions (Details) - Schedule of purchase price allocation - USD ($) $ in Thousands | Apr. 05, 2022 | Aug. 10, 2021 | Aug. 07, 2020 |
Custom Gateway [Member] | Cash [Member] | |||
Tangible assets (liabilities): | |||
Cash | $ 1,349 | ||
Custom Gateway [Member] | Account receivables and other receivables [Member] | |||
Tangible assets (liabilities): | |||
Account receivables and other receivables | 761 | ||
Custom Gateway [Member] | Property and equipment [Member] | |||
Tangible assets (liabilities): | |||
Property and equipment | 53 | ||
Custom Gateway [Member] | Trade payables and other payables [Member] | |||
Tangible assets (liabilities): | |||
Trade payables and other payables | (1,054) | ||
Custom Gateway [Member] | Deferred tax liabilities, net [Member] | |||
Tangible assets (liabilities): | |||
Deferred tax liabilities, net | (952) | ||
Custom Gateway [Member] | Technology [Member] | |||
Intangible assets: | |||
Intangible assets | 5,116 | ||
Custom Gateway [Member] | Non-Competition [Member] | |||
Intangible assets: | |||
Intangible assets | 709 | ||
Custom Gateway [Member] | Goodwill [Member] | |||
Intangible assets: | |||
Goodwill | 10,902 | ||
Custom Gateway [Member] | Total purchase price [Member] | |||
Intangible assets: | |||
Total purchase price | $ 16,884 | ||
Voxel8 Inc. [Member] | Tangible assets, net [Member] | |||
Intangible assets: | |||
Tangible assets, net | $ 1,448 | ||
Voxel8 Inc. [Member] | Technology - materials [Member] | |||
Intangible assets: | |||
Intangible assets | 1,795 | ||
Voxel8 Inc. [Member] | Technology - Systems [Member] | |||
Intangible assets: | |||
Intangible assets | 1,767 | ||
Voxel8 Inc. [Member] | License [Member] | |||
Intangible assets: | |||
Intangible assets | 1,000 | ||
Voxel8 Inc. [Member] | Goodwill [Member] | |||
Intangible assets: | |||
Goodwill | 8,981 | ||
Voxel8 Inc. [Member] | Total purchase price [Member] | |||
Intangible assets: | |||
Total purchase price | $ 14,991 | ||
Tesoma GMBH [Member] | Cash [Member] | |||
Tangible assets (liabilities): | |||
Cash | $ 789 | ||
Tesoma GMBH [Member] | Accounts receivable and other receivables [Member] | |||
Tangible assets (liabilities): | |||
Account receivables and other receivables | 1,672 | ||
Tesoma GMBH [Member] | Inventory [Member] | |||
Tangible assets (liabilities): | |||
Inventory | 3,991 | ||
Tesoma GMBH [Member] | Property and equipment [Member] | |||
Tangible assets (liabilities): | |||
Property and equipment | 6,194 | ||
Tesoma GMBH [Member] | Other assets [Member] | |||
Tangible assets (liabilities): | |||
Other assets | 343 | ||
Tesoma GMBH [Member] | Advance from customers [Member] | |||
Tangible assets (liabilities): | |||
Advance from customers | (1,726) | ||
Tesoma GMBH [Member] | Trade payables [Member] | |||
Tangible assets (liabilities): | |||
Trade payables and other payables | (466) | ||
Tesoma GMBH [Member] | Provisions and other liabilities [Member] | |||
Tangible assets (liabilities): | |||
Provisions and other liabilities | (717) | ||
Tesoma GMBH [Member] | Deferred tax liabilities, net [Member] | |||
Tangible assets (liabilities): | |||
Deferred tax liabilities, net | (855) | ||
Tesoma GMBH [Member] | Net assets [Member] | |||
Tangible assets (liabilities): | |||
Net assets | 9,225 | ||
Tesoma GMBH [Member] | Customer Relationship [Member] | |||
Intangible assets: | |||
Intangible assets | $ 1,213 | ||
Intangible assets | 5 years 9 months 18 days | ||
Tesoma GMBH [Member] | Technology [Member] | |||
Intangible assets: | |||
Intangible assets | $ 856 | ||
Intangible assets | 2 years 4 months 24 days | ||
Tesoma GMBH [Member] | Backlog [Member] | |||
Intangible assets: | |||
Intangible assets | $ 432 | ||
Intangible assets | 6 months | ||
Tesoma GMBH [Member] | Goodwill [Member] | |||
Intangible assets: | |||
Goodwill | $ 3,717 | ||
Goodwill | Infinite | ||
Tesoma GMBH [Member] | Total purchase price [Member] | |||
Intangible assets: | |||
Total purchase price | $ 15,443 |
Marketable Securities (Details)
Marketable Securities (Details) - Schedule of marketable securities - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Matures within one year: | ||
Amortized cost | $ 283,774 | $ 177,949 |
Gross unrealized gain | 12 | 625 |
Gross unrealized loss | (17,436) | (1,189) |
Fair value | 266,350 | 177,385 |
Matures within one year: Corporate debentures [Member] | ||
Matures within one year: | ||
Amortized cost | 13,394 | 25,430 |
Gross unrealized gain | 170 | |
Gross unrealized loss | (176) | |
Fair value | 13,218 | 25,600 |
Matures within one year: Government debentures [Member] | ||
Matures within one year: | ||
Amortized cost | 7,356 | 2,507 |
Gross unrealized gain | 9 | |
Gross unrealized loss | (194) | |
Fair value | 7,162 | 2,516 |
Matures within one year [Member] | ||
Matures within one year: | ||
Amortized cost | 20,750 | 27,937 |
Gross unrealized gain | 179 | |
Gross unrealized loss | (370) | |
Fair value | 20,380 | 28,116 |
Matures after one through four years: Corporate debentures [Member] | ||
Matures within one year: | ||
Amortized cost | 254,909 | 140,364 |
Gross unrealized gain | 12 | 435 |
Gross unrealized loss | (16,573) | (1,090) |
Fair value | 238,348 | 139,709 |
Matures after one through four years: Government debentures [Member] | ||
Matures within one year: | ||
Amortized cost | 8,115 | 9,648 |
Gross unrealized gain | 11 | |
Gross unrealized loss | (493) | (99) |
Fair value | 7,622 | 9,560 |
Matures after one through four years [Member] | ||
Matures within one year: | ||
Amortized cost | 263,024 | 150,012 |
Gross unrealized gain | 12 | 446 |
Gross unrealized loss | (17,066) | (1,189) |
Fair value | $ 245,970 | $ 149,269 |
Marketable Securities (Detail_2
Marketable Securities (Details) - Schedule of investments with continuous unrealized losses - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Marketable Securities (Details) - Schedule of investments with continuous unrealized losses [Line Items] | ||
Less than 12 months, Fair value | $ 150,137 | $ 120,723 |
Less than 12 months, Unrealized losses | (7,983) | (1,166) |
More than 12 months, Fair value | 111,938 | 3,586 |
More than 12 months, Unrealized losses | (9,453) | (23) |
Fair value | 262,075 | 124,309 |
Unrealized losses | (17,436) | (1,189) |
Corporate debentures [Member] | ||
Marketable Securities (Details) - Schedule of investments with continuous unrealized losses [Line Items] | ||
Less than 12 months, Fair value | 143,402 | 114,199 |
Less than 12 months, Unrealized losses | (7,666) | (1,075) |
More than 12 months, Fair value | 103,890 | 1,063 |
More than 12 months, Unrealized losses | (9,083) | (15) |
Fair value | 247,292 | 115,262 |
Unrealized losses | (16,749) | (1,090) |
Government debentures [Member] | ||
Marketable Securities (Details) - Schedule of investments with continuous unrealized losses [Line Items] | ||
Less than 12 months, Fair value | 6,735 | 6,524 |
Less than 12 months, Unrealized losses | (317) | (91) |
More than 12 months, Fair value | 8,048 | 2,523 |
More than 12 months, Unrealized losses | (370) | (8) |
Fair value | 14,783 | 9,047 |
Unrealized losses | $ (687) | $ (99) |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - Schedule of assets and liabilities that were measured at fair value - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Fair Value Measurements (Details) - Schedule of assets and liabilities that were measured at fair value [Line Items] | ||
Cash and cash equivalents | $ 104,597 | $ 611,551 |
Short-term bank deposits | 275,033 | 9,168 |
Marketable securities | 266,350 | 177,385 |
Foreign currency derivative contracts | 317 | |
Total financial assets | 645,980 | 798,421 |
Foreign currency derivative contracts | (1,000) | |
Level 1 [Member] | ||
Fair Value Measurements (Details) - Schedule of assets and liabilities that were measured at fair value [Line Items] | ||
Cash and cash equivalents | 104,597 | 611,551 |
Short-term bank deposits | 275,033 | 9,168 |
Marketable securities | ||
Foreign currency derivative contracts | ||
Total financial assets | 379,630 | 620,719 |
Foreign currency derivative contracts | ||
Level 2 [Member] | ||
Fair Value Measurements (Details) - Schedule of assets and liabilities that were measured at fair value [Line Items] | ||
Cash and cash equivalents | ||
Short-term bank deposits | ||
Marketable securities | 266,350 | 177,385 |
Foreign currency derivative contracts | 317 | |
Total financial assets | 266,350 | 177,702 |
Foreign currency derivative contracts | (1,000) | |
Level 3 [Member] | ||
Fair Value Measurements (Details) - Schedule of assets and liabilities that were measured at fair value [Line Items] | ||
Cash and cash equivalents | ||
Short-term bank deposits | ||
Marketable securities | ||
Foreign currency derivative contracts | ||
Total financial assets | ||
Foreign currency derivative contracts |
Inventories, Net (Details)
Inventories, Net (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Inventory Disclosure [Abstract] | ||
Inventory delivered to customers | $ 405 | $ 654 |
Inventories, Net (Details) - Sc
Inventories, Net (Details) - Schedule of inventories - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule of Inventories [Abstract] | |||
Raw materials and components | $ 47,737 | $ 29,857 | |
Finished goods | [1] | 41,678 | 33,160 |
Inventories, total | $ 89,415 | $ 63,017 | |
[1]Includes amounts of $405 and $654 as of December 31, 2022 and 2021, respectively, with respect to inventory delivered to customers for which revenue was not yet recognized. |
Property, Plant and Equipment_3
Property, Plant and Equipment, Net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation expenses | $ 10,583 | $ 5,252 | $ 3,492 |
Property, Plant and Equipment_4
Property, Plant and Equipment, Net (Details) - Schedule of property, plant and equipment - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 94,639 | $ 68,639 |
Accumulated depreciation | (34,176) | (23,593) |
Property, plant and equipment, net | 60,463 | 45,046 |
Computer and peripheral equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 10,629 | 8,092 |
Office furniture and equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 4,988 | 3,268 |
Machinery and equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 37,702 | 28,474 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 21,373 | 16,061 |
Building and land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 19,947 | $ 12,744 |
Intangible Assets, Net (Details
Intangible Assets, Net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization expenses | $ 2,982 | $ 1,850 | $ 1,219 |
Intangible Assets, Net (Detai_2
Intangible Assets, Net (Details) - Schedule of intangible assets - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Original amount: | ||
Original amount | $ 19,233 | $ 17,422 |
Accumulated amortization: | ||
Accumulated amortization | 9,343 | 7,359 |
Intangible assets, net | 9,890 | 10,063 |
Acquired technology [Member] | ||
Original amount: | ||
Original amount | 10,534 | 10,244 |
Accumulated amortization: | ||
Accumulated amortization | 3,276 | 2,355 |
License [Member] | ||
Original amount: | ||
Original amount | 1,000 | 1,000 |
Accumulated amortization: | ||
Accumulated amortization | 165 | 46 |
Customer relationships [Member] | ||
Original amount: | ||
Original amount | 4,717 | 3,504 |
Accumulated amortization: | ||
Accumulated amortization | 3,534 | 3,268 |
Non-competition agreement [Member] | ||
Original amount: | ||
Original amount | 974 | 974 |
Accumulated amortization: | ||
Accumulated amortization | 833 | 596 |
Software development costs [Member] | ||
Original amount: | ||
Original amount | 1,320 | 1,320 |
Accumulated amortization: | ||
Accumulated amortization | 1,285 | 844 |
Distribution rights [Member] | ||
Original amount: | ||
Original amount | 688 | 380 |
Accumulated amortization: | ||
Accumulated amortization | $ 250 | $ 250 |
Intangible Assets, Net (Detai_3
Intangible Assets, Net (Details) - Schedule of future amortization expenses $ in Thousands | Dec. 31, 2022 USD ($) |
Schedule of Future Amortization Expenses [Abstract] | |
2023 | $ 2,249 |
2024 | 1,923 |
2025 | 1,539 |
2026 | 1,538 |
2027 | 1,537 |
2028 and thereafter | 1,104 |
Total | $ 9,890 |
Accrued Expenses and Other Pa_3
Accrued Expenses and Other Payables (Details) - Schedule of accrued expenses and other payables - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Schedule of accrued expenses and other payables [Abstract] | ||
Accrued expenses | $ 16,103 | $ 6,838 |
Government authorities | 4,984 | 3,221 |
Warranty provision | 1,531 | 3,640 |
Provision for returns | 1,084 | 2,178 |
Professional services | 1,890 | 1,410 |
Total | $ 25,592 | $ 17,287 |
Commitments and Contingent Li_2
Commitments and Contingent Liabilities (Details) $ in Thousands, ₪ in Millions | 12 Months Ended | |||
Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Dec. 31, 2022 ILS (₪) | |
Commitments and Contingent Liabilities (Details) [Line Items] | ||||
Line of credit (in New Shekels) | ₪ | ₪ 6 | |||
Interest rate, description | This line of credit is unsecured and available subject to (i) the Company’s maintenance of a 30% ratio of total tangible shareholders’ equity to total tangible assets, and (ii) the total credit use being less than 70% of the Company’s and its subsidiaries’ receivables. Interest rates across this credit line varied from 0.3% to 5.45% as of December 31, 2022. | |||
Purchase commitments | $ 83,758 | |||
Royalties percentage | 2.50% | |||
Maximum annual amount | $ 625 | |||
Royalty expense | 625 | $ 625 | $ 625 | |
Five Bank Guarantees [Member] | ||||
Commitments and Contingent Liabilities (Details) [Line Items] | ||||
Total guarantees amount | $ 846 |
Shareholders' Equity (Details)
Shareholders' Equity (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | |||||||
Nov. 19, 2021 | Sep. 16, 2020 | Sep. 14, 2020 | Jan. 10, 2017 | May 01, 2016 | Jan. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Shareholders' Equity (Details) [Line Items] | |||||||||
Net proceeds from offering | $ 339,760 | $ 161,981 | |||||||
Unrecognized compensation expense | $ 11,357 | ||||||||
Weighted average vesting period | 3 years 18 days | ||||||||
Weighted average fair value of options granted (in Dollars per share) | $ 47.06 | $ 64.93 | $ 31.55 | ||||||
Total intrinsic value of options exercised | $ 1,086 | $ 27,181 | $ 12,698 | ||||||
Weighted average fair value of shares vested (in Dollars per share) | $ 57.98 | ||||||||
Risk-free rate | 0.40% | ||||||||
Volatility rate | 52% | ||||||||
Dividend yield | 0% | ||||||||
Expected term | 5 years 3 months 25 days | ||||||||
Recognized reduction revenues | $ 22,500 | $ 25,423 | $ 5,366 | ||||||
Total unrecognized amount to be recognized as reduction in revenues | $ 61,675 | ||||||||
Secondary Offering [Member] | |||||||||
Shareholders' Equity (Details) [Line Items] | |||||||||
Ordinary shares sold (in Shares) | 2,999,999 | ||||||||
Net proceeds from offering | $ 339,760 | $ 161,981 | |||||||
IPO [Member] | |||||||||
Shareholders' Equity (Details) [Line Items] | |||||||||
Ordinary shares sold (in Shares) | 2,336,892 | ||||||||
Master Purchase Agreement [Member] | |||||||||
Shareholders' Equity (Details) [Line Items] | |||||||||
Warrants to purchase ordinary shares (in Shares) | 3,401,028 | 2,932,176 | |||||||
Exercise price (in Dollars per share) | $ 59.26 | $ 13.04 | |||||||
Payments for purchased products and services | $ 400,000 | $ 150,000 | $ 5,000 | $ 5,000 | |||||
Class of warrant exercisable (in Shares) | 2,162,463 | ||||||||
Cashless sale (in Shares) | 1,689,942 | ||||||||
Exercised warrants (in Shares) | 769,713 | ||||||||
Shares received upon that exercise (in Shares) | 705,953 | ||||||||
Warrants exercisable (in Shares) | 1,515,870 | ||||||||
Board of Directors Chairman [Member] | |||||||||
Shareholders' Equity (Details) [Line Items] | |||||||||
Increase in the ordinary shares reserved for issuance (in Shares) | 1,065,982 | ||||||||
Ordinary shares available for future grant (in Shares) | 3,567,317 | ||||||||
Restricted Stock Units (RSUs) [Member] | |||||||||
Shareholders' Equity (Details) [Line Items] | |||||||||
Ordinary shares sold (in Shares) | 705,953 | ||||||||
Options exercisable, description | The terms of option grants generally provide that 25% of total options are exercisable one year after the grant or vesting start date determined for each optionee and a further 6.25% is exercisable at the end of each subsequent three-month period over the following 3 years. Options are exercisable for up to 10 years from the grant date. Options that are cancelled or forfeited before expiration become available for future grants. | ||||||||
Unrecognized compensation expense | $ 43,865 | ||||||||
Weighted average fair value of options granted (in Dollars per share) | $ 43.65 | $ 115.65 | $ 40.93 | ||||||
Weighted average fair value of shares vested (in Dollars per share) | $ 31.63 | $ 24.52 | |||||||
Weighted average vesting period | 2 years 9 months 10 days | ||||||||
Phantom Share Units (PSUs) [Member] | |||||||||
Shareholders' Equity (Details) [Line Items] | |||||||||
Fair value of options vested | $ 1,338 |
Shareholders' Equity (Details)
Shareholders' Equity (Details) - Schedule of share option activity and related information $ / shares in Units, $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) $ / shares shares | |
Schedule Of Share Option Activity And Related Information Abstract | |
Number of shares upon exercise, Outstanding, Beginning balance | shares | 413,175 |
Weighted average exercise price Outstanding, Beginning balance | $ / shares | $ 19.58 |
Weighted- average remaining contractual term (in years) | 5 years 9 months 14 days |
Aggregate intrinsic value Outstanding, Beginning balance | $ | $ 54,815 |
Number of shares upon exercise, Granted | shares | 356,933 |
Weighted average exercise price, Granted | $ / shares | $ 95.04 |
Weighted-Average Remaining Contractual Term (in years), Granted | |
Aggregate intrinsic value, Granted | $ | |
Number of shares upon exercise, Exercised | shares | (38,559) |
Weighted average exercise price, Exercised | $ / shares | $ 17.86 |
Weighted-Average Remaining Contractual Term (in years), Exercised | |
Aggregate intrinsic value, Exercised | $ | $ 1,086 |
Number of shares upon exercise, Forfeited | shares | (63,227) |
Weighted average exercise price, Forfeited | $ / shares | $ 99.63 |
Weighted-Average Remaining Contractual Term (in years), Forfeited | |
Aggregate intrinsic value, Forfeited | $ | |
Number of shares upon exercise, Outstanding, Ending balance | shares | 668,322 |
Weighted average exercise price, Outstanding, Ending balance | $ / shares | $ 52.66 |
Weighted- average remaining contractual term (in years), Outstanding, Ending balance | 6 years 8 months 4 days |
Aggregate intrinsic value, Outstanding, Ending balance | $ | $ 2,310 |
Number of shares upon exercise, Exercisable | shares | 339,777 |
Weighted average exercise price, Exercisable | $ / shares | $ 17.66 |
Weighted- average remaining contractual term (in years), Exercisable | 4 years 5 months 1 day |
Aggregate intrinsic value, Exercisable | $ | $ 2,288 |
Shareholders' Equity (Details_2
Shareholders' Equity (Details) - Schedule of RSU’s activity - RSUs [Member] | 12 Months Ended |
Dec. 31, 2022 shares | |
Shareholders' Equity (Details) - Schedule of RSU’s activity [Line Items] | |
Unvested at beginning of year | 684,666 |
Granted | 827,504 |
Vested | (295,108) |
Forfeited | (166,723) |
Unvested at the end of the year | 1,050,339 |
Shareholders' Equity (Details_3
Shareholders' Equity (Details) - Schedule of share based compensation expense - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Shareholders' Equity (Details) - Schedule of share based compensation expense [Line Items] | |||
Total share-based compensation expense | $ 22,649 | $ 15,133 | $ 10,036 |
Cost of products [Member] | |||
Shareholders' Equity (Details) - Schedule of share based compensation expense [Line Items] | |||
Total share-based compensation expense | 2,185 | 1,355 | 1,056 |
Cost of services [Member] | |||
Shareholders' Equity (Details) - Schedule of share based compensation expense [Line Items] | |||
Total share-based compensation expense | 1,676 | 1,105 | 771 |
Research and development, net [Member] | |||
Shareholders' Equity (Details) - Schedule of share based compensation expense [Line Items] | |||
Total share-based compensation expense | 5,312 | 2,685 | 1,712 |
Sales and marketing [Member] | |||
Shareholders' Equity (Details) - Schedule of share based compensation expense [Line Items] | |||
Total share-based compensation expense | 7,361 | 5,004 | 2,893 |
General and administrative [Member] | |||
Shareholders' Equity (Details) - Schedule of share based compensation expense [Line Items] | |||
Total share-based compensation expense | $ 6,115 | $ 4,984 | $ 3,604 |
Earnings (Losses) Per Share (De
Earnings (Losses) Per Share (Details) - Schedule of basic and diluted earnings (losses) per share - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Numerator for basic and diluted earnings (losses) per share: | |||
Net income (loss) (in Dollars) | $ (79,065) | $ 15,527 | $ (4,783) |
Weighted average ordinary shares outstanding: | |||
Denominator for basic earnings (losses) per share | 49,791,659 | 47,079,358 | 42,286,275 |
Effect of dilutive securities: | |||
Employee share options, RSUs, PSUs and Warrants | 1,520,737 | ||
Denominator for diluted earnings (losses) per share | 49,791,659 | 48,600,095 | 42,286,275 |
Basic earnings (losses) per share (in Dollars per share) | $ (1.59) | $ 0.33 | $ (0.11) |
Diluted earnings (losses) per share (in Dollars per share) | $ (1.59) | $ 0.32 | $ (0.11) |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Details) - Schedule of accumulated balances other comprehensive income (Loss) $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Beginning balance | $ 571 |
Other comprehensive income before reclassifications | (20,362) |
Amounts reclassified from accumulated other comprehensive income | 2,367 |
Net current period other comprehensive income | (17,995) |
Ending Balance | (17,424) |
Unrealized Gains (losses) on marketable securities [Member] | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Beginning balance | (522) |
Other comprehensive income before reclassifications | (16,912) |
Amounts reclassified from accumulated other comprehensive income | 10 |
Net current period other comprehensive income | (16,902) |
Ending Balance | (17,424) |
Unrealized Gains (losses) on cash flow hedges [Member] | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Beginning balance | 293 |
Other comprehensive income before reclassifications | (3,450) |
Amounts reclassified from accumulated other comprehensive income | 2,357 |
Net current period other comprehensive income | (1,093) |
Ending Balance | (800) |
Foreign currency translation adjustment [Member] | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Beginning balance | 800 |
Other comprehensive income before reclassifications | |
Amounts reclassified from accumulated other comprehensive income | |
Net current period other comprehensive income | |
Ending Balance | $ 800 |
Leases (Details)
Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Leases [Abstract] [Standard Label] | |||
Cash paid | $ 6,282 | $ 5,490 | $ 4,635 |
Leases, description | Some of these agreements include allowances, such as, the Company’s option to extend the leases for additional terms, of up to five years. | ||
Weighted average remaining lease term | 6 years 10 months 24 days | ||
Weighted average discount rate | 2.60% | ||
Operating lease, description | As of December 31, 2022 the Company has entered into operating lease agreements that have not yet commenced with estimated lease obligations of approximately $8 million. These operating lease agreements will commence in 2023 with a lease term of up to ten years, including an option for a five-year extension. |
Leases (Details) - Schedule of
Leases (Details) - Schedule of lease expense - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule of lease expense [Abstract] | |||
Operating lease | $ 6,126 | $ 5,085 | $ 4,544 |
Short-term lease | 297 | 264 | 34 |
Total lease expense | $ 6,423 | $ 5,349 | $ 4,578 |
Leases (Details) - Schedule o_2
Leases (Details) - Schedule of maturities of operating lease liabilities $ in Thousands | Dec. 31, 2022 USD ($) |
Schedule of maturities of operating lease liabilities [Abstract] | |
2023 | $ 5,563 |
2024 | 4,884 |
2025 | 3,999 |
2026 | 2,982 |
2027 | 2,878 |
Thereafter | 8,094 |
Total operating lease payments | 28,400 |
Less - imputed interest | (2,376) |
Present value of future lease payments | $ 26,024 |
Taxes on Income (Details)
Taxes on Income (Details) $ in Thousands, ₪ in Millions | 12 Months Ended | |||||
Nov. 30, 2022 USD ($) | Nov. 15, 2021 | Dec. 31, 2017 | Jan. 01, 2017 ILS (₪) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Taxes on Income (Details) [Line Items] | ||||||
Israeli corporate income tax rate | 23% | |||||
Dividend withholding tax rate | 20% | |||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 30% | |||||
Released earnings, description | Assets used by the company, salaries of newly recruited employees, for a period of up to 5 years. | |||||
Paid of corporate tax (in Dollars) | $ 11,485 | |||||
Corporate tax on exempt income (in Dollars) | $ 133,751 | |||||
Tax rate | 7.50% | 20% | ||||
Percentage of corporate tax rate | 12% | |||||
Benefitted intangible assets (in New Shekels) | ₪ | ₪ 200 | |||||
Undistributed earnings of foreign subsidiaries (in Dollars) | $ 17,734 | |||||
Corporate tax rate (in Dollars) | 2,211 | |||||
Carryforward operating tax losses (in Dollars) | 98,500 | |||||
Unrecognized tax benefit (in Dollars) | $ 131 | $ 788 | ||||
Minimum [Member] | ||||||
Taxes on Income (Details) [Line Items] | ||||||
Percentage of tax | 30% | |||||
Effective tax rate | 6% | |||||
Tax rate | 20% | |||||
Maximum [Member] | ||||||
Taxes on Income (Details) [Line Items] | ||||||
Percentage of tax | (60.00%) | |||||
Effective tax rate | 17.50% | |||||
Israeli [Member] | ||||||
Taxes on Income (Details) [Line Items] | ||||||
Tax rate | 16% | |||||
Preferred Technology [Member] | ||||||
Taxes on Income (Details) [Line Items] | ||||||
Tax rate | 12% | 7.50% | ||||
Preferred Technology [Member] | Israeli [Member] | ||||||
Taxes on Income (Details) [Line Items] | ||||||
Tax rate | 12% | |||||
Gateway Ltd [Member] | ||||||
Taxes on Income (Details) [Line Items] | ||||||
Carryforward operating tax losses (in Dollars) | $ 6,300 | |||||
Kornit Digital UK Ltd [Member] | ||||||
Taxes on Income (Details) [Line Items] | ||||||
Carryforward operating tax losses (in Dollars) | 900 | |||||
Tesoma GmbH [Member] | ||||||
Taxes on Income (Details) [Line Items] | ||||||
Carryforward operating tax losses (in Dollars) | $ 200 |
Taxes on Income (Details) - Sch
Taxes on Income (Details) - Schedule of deferred tax liabilities and assets - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred tax assets: | ||
Carryforward tax losses | $ 9,494 | $ 4,426 |
Share-based compensation expenses | 1,853 | 934 |
Research and development expenses | 3,605 | 2,666 |
Allowance and other reserves | 6,672 | 2,685 |
Operating lease liabilities | 2,622 | 2,820 |
Total gross deferred tax assets | 24,246 | 13,531 |
Less, Valuation Allowance | (19,735) | |
Total deferred tax assets | 4,511 | 13,531 |
Deferred tax liabilities: | ||
Operating lease ROU assets | (2,690) | (2,670) |
Intangible assets | (1,539) | (1,007) |
Others | (826) | (515) |
Total gross deferred tax liabilities | (5,055) | (4,192) |
Net deferred tax assets (liabilities) | $ (544) | $ 9,339 |
Taxes on Income (Details) - S_2
Taxes on Income (Details) - Schedule of income (loss) before income tax - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule Of Income Loss Before Income Tax Abstract | |||
Domestic | $ (58,085) | $ 10,334 | $ (6,926) |
Foreign | 1,585 | 5,058 | 3,695 |
Income (loss) before income taxes | $ (56,500) | $ 15,392 | $ (3,231) |
Taxes on Income (Details) - S_3
Taxes on Income (Details) - Schedule of taxes on income (tax benefits) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule Of Taxes On Income Tax Benefits Abstract | |||
Current taxes | $ 12,619 | $ (550) | $ 210 |
Deferred taxes | 9,946 | 415 | 1,342 |
Total | 22,565 | (135) | 1,552 |
Domestic | 20,400 | 322 | 1,360 |
Foreign | 2,165 | (457) | 192 |
Total | $ 22,565 | $ (135) | $ 1,552 |
Taxes on Income (Details) - S_4
Taxes on Income (Details) - Schedule of taxes on income (tax benefits), domestic and foreign - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule Of Taxes On Income Tax Benefits Domestic And Foreign Abstract | |||
Current taxes | $ 11,119 | $ (1,171) | $ 16 |
Deferred taxes | 9,281 | 1,493 | 1,344 |
Domestic taxes, total | 20,400 | 322 | 1,360 |
Current taxes | 1,500 | 621 | 194 |
Deferred taxes | 665 | (1,078) | (2) |
Foreign taxes, total | 2,165 | (457) | 192 |
Taxes on income | $ 22,565 | $ (135) | $ 1,552 |
Taxes on Income (Details) - S_5
Taxes on Income (Details) - Schedule of unrecognized tax benefits - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | |||
Schedule Of Unrecognized Tax Benefits Abstract | ||||
Beginning of year | $ 1,034 | [1] | $ 4,357 | |
Additions related to tax positions taken during current year | 312 | 613 | ||
Reduction related to settlements of tax matters | (1,286) | |||
Reductions for tax positions of prior years | (952) | (2,650) | ||
Balance at December 31 | [1] | $ 394 | $ 1,034 | |
[1]As of December 31, 2022, and 2021 unrecognized tax benefits in an amount of $131 and $788, respectively, were presented as a reduction from deferred taxes. |
Taxes on Income (Details) - S_6
Taxes on Income (Details) - Schedule of effective income tax rate reconciliation - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule Of Effective Income Tax Rate Reconciliation Abstract | |||
Income (loss) before taxes, as reported in the consolidated statements of operations | $ (56,500) | $ 15,392 | $ (3,231) |
Theoretical tax expense (benefit) at the Israeli statutory tax rate | (12,995) | 3,540 | (741) |
Beneficiary enterprise expenses (benefit) | 9,003 | (560) | (68) |
Tax adjustment in respect of different tax rate of foreign subsidiaries | 639 | 309 | (94) |
Non-deductible expenses and other permanent differences | (289) | (1,808) | (278) |
Share based compensation | 541 | 355 | 1,485 |
Increase (decrease) in other uncertain tax positions, net | (639) | (2,037) | 1,318 |
Taxes related to prior years (see also note 15b) | 11,471 | ||
Losses and timing differences for which valuation allowance was provided | 15,727 | ||
Others | (893) | 66 | (70) |
Actual tax expense (benefit) | $ 22,565 | $ (135) | $ 1,552 |
Geographic Information (Details
Geographic Information (Details) - Schedule of long-lived assets by geographic region - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Geographic Information (Details) - Schedule of long-lived assets by geographic region [Line Items] | ||
Long-lived assets | $ 87,602 | $ 70,201 |
U.S [Member] | ||
Geographic Information (Details) - Schedule of long-lived assets by geographic region [Line Items] | ||
Long-lived assets | 6,202 | 6,433 |
Israel [Member] | ||
Geographic Information (Details) - Schedule of long-lived assets by geographic region [Line Items] | ||
Long-lived assets | 70,722 | 61,339 |
EMEA [Member] | ||
Geographic Information (Details) - Schedule of long-lived assets by geographic region [Line Items] | ||
Long-lived assets | 9,720 | 1,787 |
Asia Pacific [Member] | ||
Geographic Information (Details) - Schedule of long-lived assets by geographic region [Line Items] | ||
Long-lived assets | $ 958 | $ 642 |
Geographic Information (Detai_2
Geographic Information (Details) - Schedule of major customers’ data as a percentage | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Customer A [Member] | |||
Revenue, Major Customer [Line Items] | |||
Percentage of revenue by major customers | 27% | 27% | 11% |
Customer B [Member] | |||
Revenue, Major Customer [Line Items] | |||
Percentage of revenue by major customers | 2% | 12% | 11% |
Financial Income, Net (Details)
Financial Income, Net (Details) - Schedule of financial income, net - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Financial income: | |||
Interest on bank deposits and other | $ 6,586 | $ 2,129 | $ 2,238 |
Exchange rate differences, net | 2,426 | ||
Realized gain on sale of marketable securities, net | 32 | 503 | |
Interest on marketable securities | 6,465 | 3,243 | 2,870 |
Total financial income | 15,477 | 5,404 | 5,611 |
Financial expenses: | |||
Bank charges | (265) | (286) | (357) |
Exchange rate differences, net | (1,240) | (1,361) | |
Realized loss on sale of marketable securities, net | (10) | ||
Amortization of premium and accretion of discount on marketable securities, net | (1,820) | (1,279) | (395) |
Total financial expenses | (2,095) | (2,805) | (2,113) |
Total financial income, net: | $ 13,382 | $ 2,599 | $ 3,498 |
Balances and Transactions wit_2
Balances and Transactions with Related Parties (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Sep. 13, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Fritz Companies Israel T. Ltd. [Member] | ||||
Balances and Transactions with Related Parties (Details) [Line Items] | ||||
Logistic service fees | $ 4,263 | $ 5,369 | $ 4,096 | |
Trade payables balances due to related party | 259 | 1,178 | ||
Accord Insurance Agency Ltd. [Member] | ||||
Balances and Transactions with Related Parties (Details) [Line Items] | ||||
Total premium | 520 | 423 | 838 | |
Priority Software Ltd.[Member] | ||||
Balances and Transactions with Related Parties (Details) [Line Items] | ||||
Maintenances fees and additional licenses acquired amount | 34 | 221 | $ 100 | |
Trade payables balances due to related party | 0 | 0 | ||
Tritone Technologies Ltd. [Member] | ||||
Balances and Transactions with Related Parties (Details) [Line Items] | ||||
Sublease, description | the Company entered into a sublease agreement with Tritone Technologies Ltd., whose CEO is Mr. Ofer Ben Zur, a director of the Company, and one of whose shareholders is an equity fund controlled by the Chairman of the Board, for the sublease of 192 square meters in Rosh Ha’Ayin. The term of the related lease was extended until January 31, 2023. The rent under the sublease is $2 per month, in addition to the rent for the related lease that is covered by the sublessee. The sublease agreement is carried out on a “back-to-back” basis, as the Company pays over the rent that it receives directly to its landlord. | |||
Trade receivable balance due from related party | 9 | 5 | ||
Magalcom Ltd. [Member] | ||||
Balances and Transactions with Related Parties (Details) [Line Items] | ||||
Trade payables balances due to related party | 0 | $ 282 | ||
Approximated total consideration | 650 | |||
Transaction amount | $ 182 |